Exhibit 4.4
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SOLA INTERNATIONAL INC.
as Issuer
and
THE BANK OF NEW YORK,
as Trustee
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Indenture
Dated as of April 17, 2001
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11% Senior Notes due 2008
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TABLE OF CONTENTS
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ARTICLE ONE
DEFINITIONS AND INCORPORATION BY REFERENCE
SECTION 1.01. Definitions............................................................................. 1
SECTION 1.02. Incorporation by Reference of Trust Indenture Act....................................... 30
SECTION 1.03. Rules of Construction................................................................... 30
ARTICLE TWO
THE NOTES
SECTION 2.01. The Notes............................................................................... 31
SECTION 2.02. Restrictive Legends..................................................................... 33
SECTION 2.03. Execution and Authentication............................................................ 35
SECTION 2.04. Registrar and Paying Agent.............................................................. 36
SECTION 2.05. Holders to Be Treated as Owners; Payments of Interest................................... 36
SECTION 2.06. Paying Agent to Hold Money in Trust..................................................... 37
SECTION 2.07. Transfer and Exchange................................................................... 37
SECTION 2.08. Replacement Notes....................................................................... 49
SECTION 2.09. Outstanding Notes....................................................................... 50
SECTION 2.10. Temporary Notes......................................................................... 50
SECTION 2.11. Cancellation............................................................................ 51
SECTION 2.12. ISIN Numbers and Common Codes........................................................... 51
SECTION 2.13. Defaulted Interest...................................................................... 51
SECTION 2.14. Issuance of Additional Notes............................................................ 51
ARTICLE THREE
REDEMPTION
SECTION 3.01. Optional Redemption..................................................................... 52
SECTION 3.02. Notices to Trustee...................................................................... 53
SECTION 3.03. Selection of Notes to Be Redeemed....................................................... 53
SECTION 3.04. Notice of Redemption.................................................................... 53
SECTION 3.05. Effect of Notice of Redemption.......................................................... 55
SECTION 3.06. Deposit of Redemption Price............................................................. 55
SECTION 3.07. Payment of Notes Called for Redemption.................................................. 55
SECTION 3.08. Notes Redeemed in Part.................................................................. 55
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ARTICLE FOUR
COVENANTS
SECTION 4.01. Payment of Notes........................................................................ 56
SECTION 4.02. Maintenance of Office or Agency......................................................... 56
SECTION 4.03. Limitation on Additional Indebtedness................................................... 56
SECTION 4.04. Limitation on Layering Indebtedness..................................................... 58
SECTION 4.05. Limitation on Restricted Payments....................................................... 58
SECTION 4.06. Limitation on Dividend and Other Payment Restrictions Affecting Restricted
Subsidiaries......................................................................... 60
SECTION 4.07. Limitation on the Issuance or Sale of Capital Stock of Restricted Subsidiaries.......... 62
SECTION 4.08. Limitation on Sale and Leaseback Transactions........................................... 62
SECTION 4.09. Limitation on Transactions with Affiliates.............................................. 62
SECTION 4.10. Limitation on Liens..................................................................... 64
SECTION 4.11. Limitation on Asset Sales............................................................... 65
SECTION 4.12. Repurchase of Notes upon a Change of Control............................................ 68
SECTION 4.13. Limitation on Designation of Unrestricted Subsidiaries.................................. 69
SECTION 4.14. Designation of Guarantor................................................................ 70
SECTION 4.15. Existence............................................................................... 71
SECTION 4.16. Payment of Taxes and Other Claims....................................................... 71
SECTION 4.16. Reports to Holders...................................................................... 71
SECTION 4.18. Conduct of Business..................................................................... 72
SECTION 4.19. Waiver of Stay, Extension or Usury Laws................................................. 72
SECTION 4.20. Compliance Certificates................................................................. 72
SECTION 4.21. Maintenance of Properties............................................................... 73
SECTION 4.22. Insurance............................................................................... 73
ARTICLE FIVE
SUCCESSOR CORPORATION
SECTION 5.01. Merger, Consolidation or Sale of Assets................................................. 73
SECTION 5.02. Successor Substituted................................................................... 75
ARTICLE SIX
DEFAULT AND REMEDIES
SECTION 6.01. Events of Default....................................................................... 76
SECTION 6.02. Acceleration............................................................................ 77
SECTION 6.03. Other Remedies.......................................................................... 78
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SECTION 6.04. Waiver of Past Defaults................................................................. 79
SECTION 6.05. Control by Majority..................................................................... 79
SECTION 6.06. Limitation on Suits..................................................................... 79
SECTION 6.07. Rights of Holders to Receive Payment.................................................... 80
SECTION 6.08. Collection Suit by Trustee.............................................................. 80
SECTION 6.09. Trustee May File Proofs of Claim........................................................ 80
SECTION 6.10. Priorities.............................................................................. 81
SECTION 6.11. Undertaking for Costs................................................................... 81
SECTION 6.12. Restoration of Rights and Remedies...................................................... 81
SECTION 6.13. Rights and Remedies Cumulative.......................................................... 81
SECTION 6.14. Delay or Omission Not Waiver............................................................ 82
ARTICLE SEVEN
TRUSTEE
SECTION 7.01. General................................................................................. 82
SECTION 7.02. Certain Rights, Duties and Responsibilities of Trustee.................................. 82
SECTION 7.03. Individual Rights of Trustee............................................................ 84
SECTION 7.04. Trustee's Disclaimer.................................................................... 84
SECTION 7.05. Notice of Default....................................................................... 84
SECTION 7.06. Reports by Trustee to Holders........................................................... 85
SECTION 7.07. Compensation and Indemnity.............................................................. 85
SECTION 7.08. Replacement of Trustee.................................................................. 86
SECTION 7.09. Successor Trustee by Merger, etc........................................................ 87
SECTION 7.10. Eligibility............................................................................. 87
SECTION 7.11. Money Held in Trust..................................................................... 87
SECTION 7.12. Withholding Taxes....................................................................... 87
SECTION 7.13. Trustee's Application for Instructions from the Company................................. 87
SECTION 7.14. Appointment of Co-Trustee............................................................... 88
ARTICLE EIGHT
DISCHARGE OF INDENTURE
SECTION 8.01. Termination of Company's Obligations.................................................... 89
SECTION 8.02. Defeasance and Discharge of Indenture................................................... 90
SECTION 8.03. Defeasance of Certain Obligations....................................................... 92
SECTION 8.04. Application of Trust Money.............................................................. 93
SECTION 8.05. Repayment to Company.................................................................... 93
SECTION 8.06. Reinstatement........................................................................... 93
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ARTICLE NINE
AMENDMENTS, SUPPLEMENTS AND WAIVERS
SECTION 9.01. Without Consent of Holders.............................................................. 94
SECTION 9.02. With Consent of Holders or Interests.................................................... 94
SECTION 9.03. Revocation and Effect of Consent........................................................ 96
SECTION 9.04. Notation on or Exchange of Notes........................................................ 96
SECTION 9.05. Trustee to Sign Amendments, Etc......................................................... 96
SECTION 9.06. Conformity with Trust Indenture Act..................................................... 97
ARTICLE TEN
MISCELLANEOUS
SECTION 10.01. Trust Indenture Act of 1939............................................................. 97
SECTION 10.02. Notices................................................................................. 97
SECTION 10.03. Certificate and Opinion as to Conditions Precedent...................................... 99
SECTION 10.04. Statements Required in Certificate...................................................... 99
SECTION 10.05. Rules by Trustee, Paying Agent or Registrar............................................. 99
SECTION 10.06. Payment Date Other Than a Business Day.................................................. 99
SECTION 10.07. Governing Law........................................................................... 100
SECTION 10.08. No Adverse Interpretation of Other Agreements........................................... 100
SECTION 10.09. No Recourse Against Others.............................................................. 100
SECTION 10.10. Successors.............................................................................. 100
SECTION 10.11. Duplicate Originals..................................................................... 100
SECTION 10.12. Separability............................................................................ 101
SECTION 10.13. Table of Contents, Headings, etc........................................................ 101
SECTION 10.14. Judgment Currency....................................................................... 101
SECTION 10.15. Waiver of Jury Trial.................................................................... 101
SECTION 10.16. Unclaimed Money; Prescription........................................................... 101
ARTICLE ELEVEN
GUARANTEE OF NOTES
SECTION 11.01. Guarantee............................................................................... 102
SECTION 11.02. Execution and Delivery of Guarantee..................................................... 103
SECTION 11.03. Waiver of Subrogation................................................................... 103
SECTION 11.04. Immediate Payment....................................................................... 104
SECTION 11.05. No Set-Off.............................................................................. 104
SECTION 11.06. Obligations Absolute.................................................................... 104
SECTION 11.07. Obligations Continuing.................................................................. 104
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SECTION 11.08. Obligations Not Reduced................................................................. 104
SECTION 11.09. Obligations Reinstated.................................................................. 105
SECTION 11.10. Obligations Not Affected................................................................ 105
SECTION 11.11. Waiver.................................................................................. 106
SECTION 11.12. No Obligation to Take Action Against Company............................................ 106
SECTION 11.13. Default and Enforcement................................................................. 106
SECTION 11.14. Costs and Expenses...................................................................... 107
SECTION 11.15. No Merger or Waiver; Cumulative Remedies................................................ 107
SECTION 11.16. Survival of Obligations................................................................. 107
SECTION 11.17. Guarantee in Addition to Other Obligations.............................................. 107
SECTION 11.18. Successors and Assigns.................................................................. 108
SECTION 11.19. Governing Law; Agent for Service; Submission to Jurisdiction; Waiver of
Immunities; Judgment Currency........................................................ 108
SECTION 11.20. Release of Guarantee.................................................................... 108
EXHIBIT A - Form of Note
EXHIBIT B - Form of Certificate of Transfer
EXHIBIT C - Form of Certificate of Exchange
EXHIBIT D - Form of Certificate from Acquiring Institutional Accredited Investor
EXHIBIT E - Form of Guarantee
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CROSS-REFERENCE TABLE
TIA Sections Indenture Sections
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Section 3.10(a)(1)..................................................... 7.10
(a)(2)..................................................... 7.10
(b)........................................................ 7.03; 7.08
Section 3.11........................................................... 7.03
Section 3.13(a)........................................................ 7.06
(c)........................................................ 7.05; 7.06
Section 3.14(a)........................................................ 4.14; 10.02
(a)(4)..................................................... 4.16
(b)........................................................ N/A
(c)(1)..................................................... N/A
(c)(2)..................................................... N/A
(d)........................................................ N/A
(e)........................................................ N/A
Section 3.15(a)........................................................ 7.02
(b)........................................................ 7.05
(c)........................................................ 7.02
(d)........................................................ 7.02
Section 3.16(a)........................................................ 6.05; 6.06
(a)(1)(A).................................................. 6.05
(a)(1)(B).................................................. 6.04
(b)........................................................ 6.07
Section 3.17(a)(1)..................................................... 6.08
(a)(2)..................................................... 6.09
Section 3.18(a)........................................................ N/A
(c)........................................................ N/A
Note: The Cross-Reference Table shall not for any purpose be deemed to be a part
of this Indenture.
INDENTURE, dated as of April 17, 2001, between SOLA
INTERNATIONAL INC., a Delaware corporation (the "Company") and THE BANK OF NEW
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YORK, a New York banking corporation, as Trustee (the "Trustee"), registrar,
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paying agent and transfer agent.
RECITALS OF THE COMPANY
The Company has duly authorized the execution and delivery of
this Indenture to provide for the issuance of (euro)205,000,000 aggregate
principal amount of the Company's 11% Senior Notes due 2008 in the form of
Initial Notes (as defined below), 11% Senior Notes due 2008 in the form of
Exchange Notes (as defined below) and, if and when issued, such Additional Notes
(as defined below) that the Company may from time to time choose to issue
pursuant to this Indenture, in each case issuable as provided in this Indenture.
All things necessary to make this Indenture a valid and legally binding
agreement of the Company, in accordance with its terms, have been done, and the
Company has done all things necessary to make the Notes, when executed by the
Company, and authenticated and delivered by the Trustee hereunder and duly
issued by the Company, valid and legally binding obligations of the Company.
AND THIS INDENTURE FURTHER WITNESSETH
For and in consideration of the premises and the purchase of
the Notes by the Holders thereof, it is mutually covenanted and agreed, for the
equal and proportionate benefit of all Holders, as follows:
ARTICLE ONE
DEFINITIONS AND INCORPORATION BY REFERENCE
SECTION 1.01. Definitions.
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"Acquired Indebtedness" means (a) with respect to any Person
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that becomes a Restricted Subsidiary after the Issue Date, Indebtedness of such
Person and its Subsidiaries existing at the time such Person becomes a
Restricted Subsidiary that was not incurred in connection with, or in
contemplation of, such Person becoming a Restricted Subsidiary and (b) with
respect to the Company or any Restricted Subsidiary, any Indebtedness of a
Person (other than the Company or a Restricted Subsidiary) existing at the time
such Person is merged with or into the Company or a Restricted Subsidiary, or
Indebtedness expressly assumed by the Company or any Restricted Subsidiary in
connection with the acquisition of an asset or assets from another Person, which
Indebtedness was not, in any case, incurred by such other Person in connection
with, or in contemplation of, such merger or acquisition.
"Additional Notes" means, subject to the Company's compliance
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with Section 4.03, 11% Senior Notes due 2008 substantially in the form of
Exhibit A and, if required, containing the Private Placement Legend, issued from
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time to time after the Issue Date under the terms of this Indenture (other than
issuances pursuant to Section 2.07, 2.08, 2.10, 3.08, 4.12 or 9.04 of this
Indenture and other than Exchange Notes issued pursuant to an exchange offer for
other Notes outstanding under this Indenture).
"Affiliate" of any Person means any other Person which
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directly or indirectly controls or is controlled by, or is under direct or
indirect common control with, the referent Person. For purposes of Section 4.09
hereof, Affiliates shall be deemed to include, with respect to any Person, any
other Person (1) which beneficially owns or holds, directly or indirectly, 10%
or more of any class of the Voting Stock of the referent Person, (2) of which
10% or more of the Voting Stock is beneficially owned or held, directly or
indirectly, by the referent Person or (3) with respect to an individual, any
immediate family member of such Person. For purposes of this definition,
"control" of a Person shall mean the power to direct the management and policies
of such Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise.
"Affiliate Transaction" has the meaning given such term in
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Section 4.09.
"Agent" means any Registrar, Paying Agent, authenticating
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agent or co-Registrar.
"amend" means to amend, supplement, restate, amend and restate
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or otherwise modify; and "amendment" shall have a correlative meaning.
"Applicable Procedures" means with respect to any transfer,
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exchange or other transaction involving a Global Note or beneficial interest
therein, the "Operating Procedures of the Euroclear System" and "Terms and
Conditions Governing Use of Euroclear," "General Terms and Conditions of
Clearstream" and "Customer Handbook" of Clearstream Banking, to the extent
applicable to such transaction and as in effect at the time of such transaction.
"asset" means any asset or property.
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"Asset Acquisition" means
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(a) an Investment by the Company or any Restricted
Subsidiary in any other Person if, as a result of such Investment, such
Person shall become a Restricted Subsidiary, or shall be merged with or
into the Company or any Restricted Subsidiary, or
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(b) the acquisition by the Company or any Restricted
Subsidiary of all or substantially all of the assets of any other
Person or any division or line of business of any other Person.
"Asset Sale" means any sale, issuance, conveyance, transfer,
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lease, assignment or other disposition by the Company or any Restricted
Subsidiary to any Person other than the Company or any Restricted Subsidiary
(including by means of a Sale and Leaseback Transaction or a merger or
consolidation) (collectively, for purposes of this definition, a "transfer"), in
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one transaction or a series of related transactions, of any assets of the
Company or any of its Restricted Subsidiaries other than in the ordinary course
of business. For purposes of this definition, the term "Asset Sale" shall not
include:
(1) transfers of cash or Cash Equivalents;
(2) transfers of assets (including Capital Stock) that are
governed by, and made in accordance with, the provisions described in
Section 5.01 hereof;
(3) Permitted Investments and Restricted Payments permitted
under Section 4.05 hereof;
(4) the creation or realization of any Permitted Lien;
(5) transfers of damaged, worn-out or obsolete assets that,
in the Company's reasonable judgment, are no longer used or useful in
the business of the Company or its Restricted Subsidiaries; and
(6) any transfer or series of related transfers that, but
for this clause, would be Asset Sales, if after giving effect to such
transfers, the aggregate Fair Market Value of the assets transferred
in such transaction or any such series of related transactions does
not exceed $250,000.
"Attributable Indebtedness," when used with respect to any
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Sale and Leaseback Transaction, means, as at the time of determination, the
present value (discounted at a rate equivalent to the Company's then-current
weighted average cost of funds for borrowed money as at the time of
determination, compounded on a semi-annual basis) of the total obligations of
the lessee for rental payments during the remaining term of the lease included
in any such Sale and Leaseback Transaction.
"Bankruptcy Law" means Title 11 of the United States Code, as
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amended, or any similar federal or state law for the relief of debtors.
"Board of Directors" means, with respect to any Person, the
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board of directors or comparable governing body of such Person.
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"Board Resolution" of a Person means a duly adopted resolution
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of the Board of Directors of such Person and delivered to the Trustee.
"Book-Entry Interest" means a beneficial interest held by or
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through a Participant in a Global Note.
"Business Day" means any day excluding Saturday, Sunday and
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any day which is a legal holiday under the laws of New York or Luxembourg or is
a day on which banking institutions therein located are authorized or required
by law or other governmental action to close.
"Capital Stock" of any Person means (1) any and all shares or
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other equity interests (including common stock, preferred stock and partnership
interests) in such Person and (2) all rights to purchase, warrants or options
(whether or not currently exercisable), participations or other equivalents of
or interests in (however designated) such shares or other interests in such
Person.
"Capitalized Lease" means a lease required to be capitalized
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for financial reporting purposes in accordance with GAAP.
"Capitalized Lease Obligations" of any Person means the
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obligations of such Person to pay rent or other amounts under a Capitalized
Lease, and the amount of such obligation shall be the capitalized amount thereof
determined in accordance with GAAP.
"Cash Equivalents" means:
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(1) marketable obligations with a maturity of 360 days or
less issued or directly and fully guaranteed or insured by the United
States of America or any agency or instrumentality thereof (provided
that the full faith and credit of the United States of America is
pledged in support thereof);
(2) demand and time deposits and certificates of deposit or
acceptances with a maturity of 360 days or less of any financial
institution that is a member of the Federal Reserve System having
combined capital and surplus and undivided profits of not less than
$500 million and is assigned at least a "B" rating by Thomson Financial
BankWatch;
(3) commercial paper maturing no more than 360 days from
the date of creation thereof issued by a corporation that is not the
Company or an Affiliate of the Company, and is organized under the laws
of any State of the United States of America or the District of
Columbia and rated at least A-1 by S&P or at least P-1 by ▇▇▇▇▇'▇;
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(4) repurchase obligations with a term of not more than ten
days for underlying securities of the types described in clause (1)
above entered into with any commercial bank meeting the specifications
of clause (2) above; and
(5) investments in money market or other mutual funds
substantially all of whose assets comprise securities of the types
described in clauses (1) through (4) above.
"Change of Control" means the occurrence of any of the
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following events:
(1) any "person" or "group" (as those terms are used in
Sections 13(d) and 14(d) of the Exchange Act), is or becomes the
beneficial owner (as defined in Rules 13d-3 and 13d-5 under the
Exchange Act, except that for purposes of this clause that person or
group shall be deemed to have "beneficial ownership" of all securities
that any such person or group has the right to acquire, whether such
right is exercisable immediately or only after the passage of time),
directly or indirectly, of Voting Stock representing more than 35% of
the voting power of the total outstanding Voting Stock of the Company;
(2) during any period of two consecutive years, individuals
who at the beginning of such period constituted the Board of Directors
(together with any new directors whose election to such Board of
Directors was approved by a vote of the majority of the directors then
still in office who were either directors at the beginning of such
period or whose election or nomination for election was previously so
approved) cease for any reason to constitute a majority of the Board of
Directors of Company; or
(3) (x) all or substantially all of the assets of the
Company and the Restricted Subsidiaries are sold or otherwise
transferred to any Person other than a Wholly-Owned Restricted
Subsidiary or (y) the Company consolidates or merges with or into
another Person or any Person consolidates or merges with or into the
Company, in either case under this clause (3), in one transaction or a
series of related transactions in which the Persons owning Voting Stock
representing in the aggregate a majority of the total voting power of
the Voting Stock of the Company immediately prior to the consummation
of such transaction or series of related transactions do not own Voting
Stock representing a majority of the total voting power of the Voting
Stock of the Company or the surviving or transferee Person immediately
after such consummation.
"Change of Control Offer" has the meaning given to such term
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in Section 4.12.
"Change of Control Purchase Price" has the meaning given to
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such term in Section 4.12.
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"Clearstream" means Clearstream Banking, societe anonyme,
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formerly Cedelbank.
"Commission" means the United States Securities and Exchange
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Commission.
"Common Depositary" means initially The Bank of New York
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Depository (Nominees) Limited or such other common depositary for the Depositary
as may be appointed by the Depositary from time to time.
"Common Stock" of any Person means any and all shares,
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interests or other participations in, and other equivalents (however designated
and whether voting or non-voting) of, such Person's ordinary shares, whether
outstanding on the Issue Date or issued after the Issue Date, and includes,
without limitation, all series and classes of such ordinary shares.
"Company" means Sola International Inc. until a successor
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replaces it pursuant to Article Five of this Indenture and thereafter means the
successor.
"Company Order" means a written request or order signed in the
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name of the Company by an authorized signatory (by virtue of a power of attorney
or other similar instrument) and delivered to the Trustee.
"Consolidated Amortization Expense" for any period means the
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amortization expense of the Company and the Restricted Subsidiaries for such
period, determined on a consolidated basis in accordance with GAAP.
"Consolidated Cash Flow" for any period means, without
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duplication, the sum of the amounts for such period of
(1) Consolidated Net Income; plus
(2) in each case only to the extent (and in the same
proportion) deducted in determining Consolidated Net Income and with
respect to the portion of Consolidated Net Income attributable to any
Restricted Subsidiary only if a corresponding amount would be permitted
at the date of determination to be distributed to the Company by such
Restricted Subsidiary without prior approval (that has not been
obtained), pursuant to the terms of its charter and all agreements,
instruments, judgments, decrees, orders, statutes, rules and
governmental regulations applicable to such Restricted Subsidiary or
its stockholders:
(a) Consolidated Income Tax Expense;
(b) Consolidated Amortization Expense (but only to the
extent not included in Consolidated Interest Expense);
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(c) Consolidated Depreciation Expense;
(d) Consolidated Interest Expense;
(e) the amount of any earn-out payment or bonus paid
by the Company or any Restricted Subsidiary for such period to
the seller(s) of any Capital Stock or business acquired by the
Company or any Restricted Subsidiary, which payment is made
pursuant to the terms of a purchase or similar agreement
entered into at the time of the acquisition; and
(f) all other non-cash items reducing the Consolidated
Net Income (excluding any non-cash charge that results in an
accrual of a reserve for cash charges in any future period)
for such period;
in each case determined on a consolidated basis in accordance with
GAAP; minus
(3) the aggregate amount of all non-cash items, determined
on a consolidated basis, to the extent such items increased
Consolidated Net Income for such period.
"Consolidated Depreciation Expense" for any period means the
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depreciation expense of the Company and the Restricted Subsidiaries for such
period, determined on a consolidated basis in accordance with GAAP.
"Consolidated Income Tax Expense" for any period means the
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provision for taxes of the Company and the Restricted Subsidiaries, determined
on a consolidated basis in accordance with GAAP.
"Consolidated Interest Coverage Ratio" means the ratio of
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Consolidated Cash Flow during the most recent four consecutive full fiscal
quarters for which financial statements are available (the "Four-Quarter
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Period") ending on or prior to the date of the transaction giving rise to the
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need to calculate the Consolidated Interest Coverage Ratio (the "Transaction
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Date") to Consolidated Interest Expense for the Four-Quarter Period. In addition
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to and without limitation of the foregoing, for purposes of this definition,
Consolidated Cash Flow and Consolidated Interest Expense shall be calculated
after giving effect on a pro forma basis for the period of such calculation to:
(1) the incurrence of any Indebtedness or the issuance of
any Preferred Stock of the Company or any Restricted Subsidiary (and
the application of the proceeds thereof) and any repayment of other
Indebtedness or redemption of other Preferred Stock (other than the
incurrence or repayment of Indebtedness in the ordinary course of
business for working capital purposes pursuant to any revolving credit
arrangement) occurring during the Four-Quarter Period or at any time
subsequent to the
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last day of the Four-Quarter Period and on or prior to the Transaction
Date, as if such incurrence, repayment, issuance or redemption, as the
case may be (and the application of the proceeds thereof), occurred on
the first day of the Four-Quarter Period; and
(2) any Asset Sale or other disposition or Asset
Acquisition (including, without limitation, any Asset Acquisition
giving rise to the need to make such calculation as a result of the
Company or any Restricted Subsidiary (including any Person who becomes
a Restricted Subsidiary as a result of such Asset Acquisition)
incurring Acquired Indebtedness and also including any Consolidated
Cash Flow (including any pro forma expense and cost reductions
calculated on a basis consistent with Regulation S-X under the Exchange
Act) associated with any such Asset Acquisition) occurring during the
Four-Quarter Period or at any time subsequent to the last day of the
Four-Quarter Period and on or prior to the Transaction Date, as if such
Asset Sale or Asset Acquisition or other disposition (including the
incurrence of, or assumption or liability for, any such Indebtedness or
Acquired Indebtedness) occurred on the first day of the Four-Quarter
Period.
If the Company or any Restricted Subsidiary directly or
indirectly guarantees Indebtedness of a third Person, the preceding sentence
shall give effect to the incurrence of such guaranteed Indebtedness as if the
Company or such Restricted Subsidiary had directly incurred or otherwise assumed
such guaranteed Indebtedness.
In calculating Consolidated Interest Expense for purposes of
determining the denominator (but not the numerator) of this Consolidated
Interest Coverage Ratio:
(1) interest on outstanding Indebtedness determined on a
fluctuating basis as of the Transaction Date and which will continue to
be so determined thereafter shall be deemed to have accrued at a fixed
rate per annum equal to the rate of interest on this Indebtedness in
effect on the Transaction Date;
(2) if interest on any Indebtedness actually incurred on
the Transaction Date may optionally be determined at an interest rate
based upon a factor of a prime or similar rate, a eurocurrency
interbank offered rate, or other rates, then the interest rate in
effect on the Transaction Date will be deemed to have been in effect
during the Four-Quarter Period; and
(3) notwithstanding clause (1) or (2) above, interest on
Indebtedness determined on a fluctuating basis, to the extent such
interest is covered by agreements relating to Hedging Obligations,
shall be deemed to accrue at the rate per annum resulting after giving
effect to the operation of these agreements.
"Consolidated Interest Expense" for any period means the sum,
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without duplication, of the total interest expense of the Company and the
Restricted Subsidiaries for such
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period, determined on a consolidated basis in accordance with GAAP and including
without duplication,
(1) imputed interest on Capitalized Lease Obligations and
Attributable Indebtedness;
(2) commissions, discounts and other fees and charges owed with
respect to letters of credit securing financial obligations, bankers'
acceptance financing and receivables financings;
(3) the net costs associated with Hedging Obligations;
(4) amortization of debt discount or premium;
(5) amortization of debt issuance costs and other financing fees
and expenses (other than such costs, fees and expenses incurred in
connection with the refinancing described in this offering memorandum);
(6) the interest portion of any deferred payment obligations;
(7) all other non-cash interest expense;
(8) capitalized interest;
(9) the product of (a) all dividend payments on any series of
Disqualified Capital Stock of the Company or any Preferred Stock of any
Restricted Subsidiary (other than any such Disqualified Capital Stock or
any Preferred Stock held by the Company or a Wholly-Owned Restricted
Subsidiary), multiplied by (b) a fraction, the numerator of which is one
and the denominator of which is one minus the then current combined
federal, state and local statutory tax rate of the Company and the
Restricted Subsidiaries, expressed as a decimal; and
(10) all interest payable with respect to discontinued operations.
"Consolidated Net Income" for any period means the net income (or
-----------------------
loss) of the Company and the Restricted Subsidiaries for such period determined
on a consolidated basis in accordance with GAAP; provided that there shall be
excluded from such net income (to the extent otherwise included therein),
without duplication:
(1) the net income (or loss) of any Person (other than a
Restricted Subsidiary) in which any Person other than the Company and the
Restricted Subsidiaries has an ownership interest, except to the extent
that cash in an amount equal to any such income has actually been received
by the Company or any of its Restricted Subsidiaries during such period;
-9-
(2) except to the extent includable in the consolidated net
income of the Company pursuant to the foregoing clause (1), the net income
(or loss) of any Person that accrued prior to the date that (a) such Person
becomes a Restricted Subsidiary or is merged into or consolidated with the
Company or any Restricted Subsidiary or (b) the assets of such Person are
acquired by the Company or any Restricted Subsidiary;
(3) the net income of any Restricted Subsidiary during such
period to the extent that the declaration or payment of dividends or
similar distributions by such Restricted Subsidiary of that income is not
permitted by operation of the terms of its charter or any agreement,
instrument, judgment, decree, order, statute, rule or governmental
regulation applicable to that Subsidiary during such period, except that
the Company's equity in a net loss of any such Restricted Subsidiary for
such period shall be included in determining Consolidated Net Income;
(4) for the purposes of calculating the Restricted Payments
Basket only, in the case of a successor to the Company by consolidation,
merger or transfer of its assets, any income (or loss) of the successor
prior to such merger, consolidation or transfer of assets;
(5) other than for purposes of calculating the Restricted
Payments Basket, any gain (or loss), together with any related provisions
for taxes on any such gain (or the tax effect of any such loss), realized
during such period by the Company or any Restricted Subsidiary upon (x) the
acquisition of any securities, or the extinguishment of any Indebtedness,
of the Company or any Restricted Subsidiary or (y) any Asset Sale by the
Company or any Restricted Subsidiary;
(6) other than for purposes of calculating the Restricted
Payments Basket, any extraordinary gain (or extraordinary loss), together
with any related provision for taxes on any such extraordinary gain (or the
tax effect of any such extraordinary loss), realized by the Company or any
Restricted Subsidiary during such period; and
(7) the effect of the Special Charges or the effect of any
reversal or reclassification after the Issue Date of any of the Special
Charges.
In addition, any return of capital with respect to an Investment that
increased the Restricted Payments Basket pursuant to Section 4.05(iii)(D) hereof
or was deemed to reduce the amount of Investments outstanding pursuant to clause
(12) of the definition of "Permitted Investments" shall be excluded from
Consolidated Net Income for purposes of calculating the Restricted Payments
Basket.
"Consolidated Net Worth" means, with respect to any Person as of any
----------------------
date, the consolidated stockholders' equity of such Person, determined on a
consolidated basis in accordance with GAAP, less (without duplication) (1) any
amounts thereof attributable to
-10-
Disqualified Capital Stock of such Person or its Subsidiaries or any amount
attributable to Unrestricted Subsidiaries and (2) all write-ups (other than
write-ups resulting from foreign currency translations and write-ups of tangible
assets of a going concern business made within twelve months after the
acquisition of such business) subsequent to the Issue Date in the book value of
any asset owned by such Person or a Subsidiary of such Person.
"Corporate Trust Office" means the office of the Trustee at which the
----------------------
corporate trust business of the Trustee shall, at any particular time, be
principally administered, which office is, at the date of this Indenture,
located at ▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇, Attention:
Corporate Trust Trustee Administration.
"Covenant Defeasance" has the meaning given such term in Section 8.03.
-------------------
"Coverage Ratio Exception" has the meaning given to such term in
------------------------
Section 4.03.
"Currency Protection Obligations" of any Person means agreements or
-------------------------------
arrangements designed to protect such Person against fluctuations in foreign
currency exchange rates in the conduct of its operations entered into in the
ordinary course of business for bona fide hedging purposes and not for the
purpose of speculation.
"Custodian" means any receiver, trustee, assignee, liquidator or
---------
similar official under any Bankruptcy Law.
"Default" means (1) any Event of Default or (2) any event, act or
-------
condition that, after notice or the passage of time or both would be, an Event
of Default.
"Definitive Registered Note" means any Note that is not a Global Note
--------------------------
and that is registered in the Register, the form of which is attached hereto as
Exhibit A.
---------
"Depositary" means Euroclear or Clearstream or a successor clearing
----------
agency to either or both of them.
"Designation" has the meaning given to that term in Section 4.13; and
-----------
"Designate" has a correlative meaning.
---------
"Designation Amount" has the meaning given to that term in Section
------------------
4.13.
"Disqualified Capital Stock" of any Person means any Capital Stock of
--------------------------
such Person that, by its terms, or by the terms of any related agreement or of
any security into which it is convertible, puttable or exchangeable, is, or upon
the happening of any event or the passage of time would be, required to be
redeemed by such Person, whether or not at the option of the holder thereof, or
matures or is mandatorily redeemable, pursuant to a sinking fund obligation or
otherwise, in whole or in part, on or prior to the date which is 91 days after
the
-11-
final maturity date of the Notes; provided, however, that any class of Capital
Stock of such Person that, by its terms, authorizes such Person to satisfy in
full its obligations with respect to the payment of dividends or upon maturity,
redemption (pursuant to a sinking fund or otherwise) or repurchase thereof or
otherwise by the delivery of Capital Stock that is not Disqualified Capital
Stock, and that is not convertible, puttable or exchangeable for Disqualified
Capital Stock or Indebtedness, will not be deemed to be Disqualified Capital
Stock so long as such Person satisfies its obligations with respect thereto
solely by the delivery of Capital Stock that is not Disqualified Capital Stock;
provided, further, however, that any Capital Stock that would not constitute
Disqualified Capital Stock but for provisions thereof giving holders thereof (or
the holders of any security into or for which such Capital Stock is convertible,
exchangeable or exercisable) the right to require the Company to redeem such
Capital Stock upon the occurrence of a change in control occurring prior to the
final maturity date of the Notes shall not constitute Disqualified Capital Stock
if the change in control provisions applicable to such Capital Stock are no more
favorable to such holders than the provisions described in Section 4.12 and such
Capital Stock specifically provides that the Company will not redeem any such
Capital Stock pursuant to such provisions prior to the Company's purchase of the
Notes as required pursuant to the provisions of Section 4.12.
"Domestic Restricted Subsidiary" means a Restricted Subsidiary
------------------------------
incorporated or organized under the laws of the United States, any State or the
District of Columbia.
"Eligible Jurisdiction" means any country in the European Union (as it
---------------------
exists on the Issue Date) or Switzerland.
"Euro Equivalent" means with respect to any monetary amount in a
---------------
currency other than Euros, at any time for the determination thereof, the amount
of Euros obtained by converting such foreign currency involved in such
computation into Euros at the spot rate for the purchase of Euros with the
applicable foreign currency as quoted by Reuters at approximately 11:00 a.m.
(New York time) on the date two Business Days prior to such determination.
"Euroclear" means Euroclear S.A./N.V. as operator of the Euroclear
---------
system.
"European Union" means the European Union, including the countries of
--------------
Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy,
Luxembourg, the Netherlands, Portugal, Spain, Sweden and the United Kingdom, but
not including any country which becomes a member of the European Union after the
Issue Date.
"Events of Default" has the meaning provided in Section 6.01.
-----------------
"Exchange Act" means the United States Securities Exchange Act of
------------
1934, as amended.
-12-
"Excess Proceeds" has the meaning provided in Section 4.11.
---------------
"Exchange Notes" means the 11% Senior Notes due 2008 to be issued
--------------
pursuant to this Indenture in connection with (i) a Registration pursuant to the
Registration Rights Agreement or, (ii) with respect to Initial Notes issued
under this Indenture from time to time after the Issue Date pursuant to Section
2.14, 11% Senior Notes due 2008 issued pursuant to a registration rights
agreement substantially identical to the Registration Rights Agreement, in each
case substantially in the form of Exhibit A
---------
"Exchange Offer" has the meaning set forth in the Registration Rights
--------------
Agreement.
"Exchange Offer Registration Statement" has the meaning set forth in
-------------------------------------
the Registration Rights Agreement.
"Eyeglass Lens Business" means (i) the design, manufacture and
----------------------
distribution of plastic and glass eyeglass lenses, (ii) the design, manufacture
and distribution of lens coatings and treatments and (iii) other optical lens
related businesses.
"Fair Market Value" means, with respect to any asset, the price (after
-----------------
taking into account any liabilities relating to such assets) that would be
negotiated in an arm's-length transaction for cash between a willing seller and
a willing and able buyer, neither of which is under any compulsion to complete
the transaction. Fair Market Value (other than of any asset with a public
trading market) in excess of $2.0 million shall be determined by the Board of
Directors of the Company acting reasonably and in good faith and shall be
evidenced by a board resolution delivered to the Trustee. Fair Market Value
(other than of any asset with a public trading market) in excess of $10.0
million shall be determined by an Independent Financial Advisor, which
determination shall be evidenced by an opinion delivered to the Trustee.
"Foreign Restricted Subsidiary" means a Restricted Subsidiary other
-----------------------------
than a Domestic Restricted Subsidiary.
"GAAP" means generally accepted accounting principles set forth in the
----
opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or in such other statements by such
other entity as may be approved by a significant segment of the accounting
profession of the United States, as in effect on the Issue Date.
"Global Notes" means the U.S. Global Note(s), the International Global
------------
Note(s) and the Unrestricted Global Notes.
-13-
"Government Obligations" means securities issued or directly and fully
----------------------
guaranteed or insured by the governments of any Eligible Jurisdiction rated AAA
or above and having maturities of not more than one year from the date of
acquisition.
"Guarantee" means any guarantee of the obligations of the Company
---------
under this Indenture and the Notes by a Guarantor. When used as a verb
"Guarantee" shall have a corresponding meaning.
"guarantee" means a direct or indirect guarantee by any Person of any
---------
Indebtedness of any other Person and includes any obligation, direct or
indirect, contingent or otherwise, of such Person: (1) to purchase or pay (or
advance or supply funds for the purchase or payment of) Indebtedness of such
other Person (whether arising by virtue of partnership arrangements, or by
agreements to keep-well, to purchase assets, goods, securities or services
(unless such purchase arrangements are on arm's-length terms and are entered
into in the ordinary course of business), to take-or-pay, or to maintain
financial statement conditions or otherwise); or (2) entered into for purposes
of assuring in any other manner the obligee of such Indebtedness of the payment
thereof or to protect such obligee against loss in respect thereof (in whole or
in part). When used as verbs, "guarantee," and "guaranteed" have correlative
meanings.
"Guarantors" means each Person that becomes a Guarantor by the terms
----------
of this Indenture after the Issue Date, in each case, until such Person is
released from its Guarantee.
"Hedging Obligations" of any Person means Interest Rate Protection
-------------------
Obligations and Currency Protection Obligations of such Person.
"Holder" means any Person shown on the Register as the registered
------
holder, from time to time, of the Notes.
"incur" means, with respect to any Indebtedness or Obligation, incur,
-----
create, issue, assume, guarantee or otherwise become directly or indirectly
liable, contingently or otherwise, with respect to such Indebtedness or
Obligation; provided that (1) the Indebtedness of a Person existing at the time
such Person became a Restricted Subsidiary shall be deemed to have been incurred
by such Restricted Subsidiary and (2) neither the accrual of interest nor the
accretion of original issue discount shall be deemed to be an incurrence of
Indebtedness.
"Indebtedness" of any Person at any date means, without duplication:
------------
(1) all liabilities, contingent or otherwise, of such Person for
borrowed money (whether or not the recourse of the lender is to the whole
of the assets of such Person or only to a portion thereof);
-14-
(2) all obligations of such Person evidenced by bonds, debentures,
notes or other similar instruments;
(3) all obligations of such Person in respect of letters of credit or
other similar instruments (or reimbursement obligations with respect
thereto);
(4) all obligations of such Person to pay the deferred and unpaid
purchase price of property or services, except trade payables and accrued
expenses incurred by such Person in the ordinary course of business in
connection with obtaining goods, materials or services;
(5) the maximum fixed redemption or repurchase price of all
Disqualified Capital Stock of such Person;
(6) all Capitalized Lease Obligations of such Person;
(7) all Indebtedness of others secured by a Lien on any asset of such
Person, whether or not such Indebtedness is assumed by such Person;
(8) all Indebtedness of others guaranteed by such Person to the
extent of such guarantee; provided that Indebtedness of the Company or a
Restricted Subsidiary that is guaranteed by the Company or another
Restricted Subsidiary shall only be counted once in the calculation of the
amount of Indebtedness of the Company and its Restricted Subsidiaries on a
consolidated basis;
(9) all Attributable Indebtedness;
(10) to the extent not otherwise included in this definition, Hedging
Obligations of such Person; and
(11) all obligations of such Person under conditional sale or other
title retention agreements relating to assets purchased by such Person.
The amount of Indebtedness of any Person at any date shall be the
outstanding balance at such date of all unconditional obligations as described
above, the maximum liability of such Person for any such contingent obligations
at such date and, in the case of clause (7), the lesser of (x) the Fair Market
Value of any asset subject to a Lien securing the Indebtedness of others on the
date that the Lien attaches and (y) the amount of the Indebtedness secured. For
purposes of the preceding sentence, the "maximum fixed redemption or repurchase
price" of any Disqualified Capital Stock that does not have a fixed redemption
or repurchase price shall be calculated in accordance with the terms of such
Disqualified Capital Stock as if such Disqualified Capital Stock were redeemed
on any date on which Indebtedness shall be required to be determined pursuant to
this Indenture, and if such price is based upon, or meas-
-15-
ured by, the fair market value of such Disqualified Capital Stock (or any equity
security for which it may be exchanged or convened), such Fair Market Value
shall be determined in good faith by the Board of Directors of such Person,
which determination shall be evidenced by a Board Resolution.
"Indenture" means this Indenture as originally executed or as it may
---------
be amended or supplemented from time to time by one or more indentures
supplemental to this Indenture entered into pursuant to the applicable
provisions of this Indenture.
"Indenture Obligations" has the meaning given such term in Section
---------------------
11.01.
"Independent Director" means a director of the Company who:
--------------------
(1) is independent with respect to the transaction at issue;
(2) does not have any material financial interest in the Company or
any of its Affiliates; and
(3) has not and whose Affiliates or affiliated firm has not, at any
time during the twelve months prior to the taking of any action hereunder,
directly or indirectly, received, or entered into any understanding or
agreement to receive, any compensation, payment or other benefit, of any
type or form, from the Company or any of its Affiliates, other than
customary directors' fees for serving on the Board of Directors of the
Company or any Affiliate and reimbursement of out-of-pocket expenses for
attendance at the Company's or Affiliate's board and board committee
meetings.
"Independent Financial Advisor" means an accounting, appraisal or
-----------------------------
investment banking firm of nationally recognized standing that is, in the
reasonable judgment of the Company's Board of Directors, qualified to perform
the task for which it has been engaged and disinterested and independent with
respect to the Company and its Affiliates.
"Indirect Participant" is defined to mean a Person who holds a Book-
--------------------
Entry Interest through a Participant.
"Initial Notes" means (i) (euro)205,000,000 aggregate principal amount
-------------
of 11% Senior Notes due 2008 issued on the Issue Date, substantially in the form
of Exhibit A and containing the Private Placement Legend and (ii) Additional
---------
Notes, in each case for so long as such notes constitute Restricted Notes.
"Insignificant Domestic Restricted Subsidiary" means a Domestic
--------------------------------------------
Restricted Subsidiary with (1) net sales that are less than 5.0% of the
consolidated net sales of the Company and the Restricted Subsidiaries for the
most recent fiscal quarter for which a consolidated income statement of the
Company is available and (2) tangible assets that are less than
-16-
2.5% of Total Tangible Assets as of the end of the most recent fiscal quarter
for which a consolidated balance sheet of the Company and the Restricted
Subsidiaries is available; provided, however, that (A) the aggregate net sales
of all Domestic Restricted Subsidiaries treated as Insignificant Domestic
Restricted Subsidiaries for purposes of this Indenture may not exceed 5.0% of
the consolidated net sales of the Company and the Restricted Subsidiaries for
any such fiscal quarter and (B) the aggregate tangible assets of all Domestic
Restricted Subsidiaries treated as Insignificant Domestic Restricted
Subsidiaries for purposes of this Indenture may not exceed 5.0% of Total
Tangible Assets as of the end of any such fiscal quarter. In the event that the
Insignificant Domestic Restricted Subsidiaries exceed in the aggregate either of
the totals in (A) or (B) above, the Company shall cause one or more Domestic
Restricted Subsidiaries to become Guarantors to the extent necessary to be in
compliance with clauses (A) and (B) above.
"Institutional Accredited Investor" means an institution that is an
---------------------------------
"accredited investor" as that term is defined in Rule 501(a)(1), (2), (3) or (7)
under the Securities Act.
"interest" means, with respect to the Notes, interest on and
--------
Liquidated Damages, if any, with respect to, the Notes.
"Interest Payment Date" means each semi-annual interest payment date
---------------------
on September 15 and March 15 of each year, commencing September 15, 2001.
"Interest Rate Protection Obligations" of any Person means the
------------------------------------
obligations of such Person pursuant to any interest rate swap agreement,
interest rate collar agreement or other similar agreement or arrangement
designed to protect such Person against fluctuations in interest rates entered
into in the ordinary course of business for bona fide hedging purposes and not
for the purpose of speculation.
"International Global Note(s)" means one or more Global Notes bearing
----------------------------
the Private Placement Legend in registered form without interest coupons that
will be issued on the Issue Date in a principal amount equal to the outstanding
principal amount of the Initial Notes sold in reliance on Regulation S and
deposited with the Common Depositary.
"Investments" of any Person means:
-----------
(1) all direct or indirect investments by such Person in any other
Person in the form of loans, advances or capital contributions or other
credit extensions constituting Indebtedness of such other Person, and any
guarantee of Indebtedness of any other Person;
(2) all purchases (or other acquisitions for consideration) by such
Person of Indebtedness, Capital Stock or other securities of any other
Person;
-17-
(3) all other items that would be classified as investments
(including purchases of assets outside the ordinary course of business) on
a balance sheet of such Person prepared in accordance with GAAP; and
(4) the Designation of any Subsidiary as an Unrestricted Subsidiary.
Except as otherwise expressly specified in this definition, the amount
of any Investment (other than an Investment made in cash) shall be the Fair
Market Value thereof on the date such Investment is made. The amount of
Investment pursuant to clause (4) shall be the Designation Amount determined in
accordance with Section 4.13 hereof. If the Company or any Restricted Subsidiary
sells or otherwise disposes of any Capital Stock of any direct or indirect
Restricted Subsidiary such that, after giving effect to any such sale or
disposition, such Person is no longer a Subsidiary, the Company shall be deemed
to have made an Investment on the date of any such sale or other disposition
equal to the Fair Market Value of the Capital Stock of and all other Investments
in such former Subsidiary not sold or disposed of, which amount shall be
determined by the Board of Directors. Notwithstanding the foregoing, purchases
or redemptions of Capital Stock of the Company shall be deemed not to be
Investments.
"Issue Date" means April 17, 2001.
----------
"Judgment Currency" has the meaning given such term in Section 10.15.
-----------------
"Legal Defeasance" has the meaning given such term in Section 8.02.
----------------
"Lien" means, with respect to any asset, any mortgage, deed of trust,
----
lien (statutory or other), pledge, lease, easement, restriction, covenant,
charge, security interest or other encumbrance of any kind or nature in respect
of such asset, whether or not filed, recorded or otherwise perfected under
applicable law, including any conditional sale or other title retention
agreement, and any lease in the nature thereof, any option or other agreement to
sell, and any filing of, or agreement to give, any financing statement under the
Uniform Commercial Code (or equivalent statutes) of any jurisdiction (other than
cautionary filings in respect of operating leases).
"Liquidated Damages" has the meaning set forth in the Registration
------------------
Rights Agreement.
"Moody's" means ▇▇▇▇▇'▇ Investors Service, Inc., and its successors.
-------
"Net Available Proceeds" means, with respect to any Asset Sale (other
----------------------
than a Planned Asset Sale), the proceeds thereof in the form of cash or Cash
Equivalents, net of
-18-
(1) brokerage commissions and other fees and expenses (including fees
and expenses of legal counsel, accountants and investment banks) of such
Asset Sale;
(2) provisions for taxes payable as a result of such Asset Sale
(after taking into account any available tax credits or deductions and any
tax sharing arrangements);
(3) amounts required to be paid to any Person (other than the Company
or any Restricted Subsidiary) owning a beneficial interest in the assets
subject to the Asset Sale or having a Lien thereon;
(4) payments of unassumed liabilities (not constituting Indebtedness)
relating to the assets sold at the time of, or within 30 days after the
date of, such Asset Sale; and
(5) appropriate amounts to be provided by the Company or any
Restricted Subsidiary, as the case may be, as a reserve required in
accordance with GAAP against any liabilities associated with such Asset
Sale and retained by the Company or any Restricted Subsidiary, as the case
may be, after such Asset Sale, including pensions and other post-employment
benefit liabilities, liabilities related to environmental matters and
liabilities under any indemnification obligations associated with such
Asset Sale, all as reflected in an Officers' Certificate delivered to the
Trustee; provided, however, that any amounts remaining after adjustments,
revaluations or liquidations of such reserves shall constitute Net
Available Proceeds.
The proceeds from the Planned Asset Sales shall be deemed to result in
no Net Available Proceeds.
"Net Proceeds Deficiency" has the meaning given such term in Section
-----------------------
4.11.
"Net Proceeds Offer" has the meaning given such term in Section 4.11.
------------------
"Notes" means, collectively, the Initial Notes, the Private Exchange
-----
Notes, if any, and the Unrestricted Notes. For purposes of this Indenture, all
Notes shall vote together as one series of Notes under this Indenture.
"Note Guarantee" has the meaning given such term in Section 4.14.
--------------
"Obligation" means any principal, interest, penalties, fees,
----------
indemnification, reimbursements, costs, expenses, damages and other liabilities
payable under the documentation governing any Indebtedness.
"Offered Price" has the meaning given such term in Section 4.11.
-------------
-19-
"Officer" means any of the following of the Company: the Chairman of
-------
the Board of Directors, the Chief Executive Officer, the Chief Financial
Officer, the President, any Vice President, the Treasurer or the Secretary.
"Officers' Certificate" means a certificate signed by two Officers.
---------------------
"Opinion of Counsel" means a written opinion from legal counsel
------------------
reasonably acceptable to the Trustee. The counsel may be an employee of or
counsel to the Company.
"Pari Passu Indebtedness" means any Indebtedness of the Company or any
-----------------------
Guarantor that ranks pari passu as to payment with the Notes or any Guarantee,
as applicable.
"Pari Passu Indebtedness Price" has the meaning given such term in
-----------------------------
Section 4.11.
"Participant" means, with respect to any Depositary, Persons who have
-----------
accounts with such Depositary.
"Paying Agent" has the meaning provided in Section 2.04, except that,
------------
for the purposes of Article Eight, the Paying Agent shall not be the Company,
any Guarantor or any Subsidiary of the Company, a Guarantor or an Affiliate of
any of them. The term "Paying Agent" includes any additional Paying Agent.
"Payment Amount" has the meaning given such term in Section 4.11.
--------------
"Permitted Indebtedness" has the meaning given to such term in Section
----------------------
4.03.
"Permitted Investment" means:
--------------------
(1) Investments by the Company or any Restricted Subsidiary in (x)
any Restricted Subsidiary or (y) in any Person that is or will become
immediately after such Investment a Restricted Subsidiary or that will
merge or consolidate into the Company or a Restricted Subsidiary;
(2) Investments in the Company by any Restricted Subsidiary;
(3) loans and advances to directors, employees and officers of the
Company and the Restricted Subsidiaries for bona fide business purposes not
in excess of $2.5 million at any one time outstanding;
(4) Hedging Obligations incurred pursuant to clause (v) of the second
paragraph of Section 4.03(b) hereof;
(5) Cash Equivalents;
-20-
(6) receivables owing to the Company or any Restricted Subsidiary if
created or acquired in the ordinary course of business and payable or
dischargeable in accordance with customary trade terms; provided, however,
that such trade terms may include such concessionary trade terms as the
Company or any such Restricted Subsidiary deems reasonable under the
circumstances;
(7) Investments of the Company and the Restricted Subsidiaries to the
extent outstanding on the Issue Date;
(8) Investments in securities of trade creditors or customers
received pursuant to any plan of reorganization or similar arrangement upon
the bankruptcy or insolvency of such trade creditors or customers;
(9) Investments made by the Company or any Restricted Subsidiary as a
result of consideration received in connection with an Asset Sale made in
compliance with Section 4.11 hereof;
(10) lease, utility and other similar deposits in the ordinary course
of business;
(11) stock, obligations or securities received in settlement of debts
created in the ordinary course of business and owing to the Company or any
Restricted Subsidiary or in satisfaction of judgments; and
(12) other Investments in an aggregate amount not to exceed $5.0
million at any one time outstanding (with each Investment being valued as
of the date made and without regard to subsequent changes in value).
The amount of Investments outstanding at any time pursuant to clause
(12) above shall be deemed to be reduced:
(a) upon the disposition or repayment of or return on any Investment
made pursuant to clause (12) above, by an amount equal to the return of
capital with respect to such Investment to the Company or any Restricted
Subsidiary (to the extent not included in the computation of Consolidated
Net Income), less the cost of the disposition of such Investment and net of
taxes; and
(b) upon a Redesignation of an Unrestricted Subsidiary as a
Restricted Subsidiary, by an amount equal to the lesser of (x) the Fair
Market Value of the Company's proportionate interest in such Subsidiary
immediately following such Redesignation, and (y) the aggregate amount of
Investments in such Subsidiary that increased (and did not previously
decrease) the amount of Investments outstanding pursuant to clause (12)
above.
-21-
"Permitted Liens" means the following types of Liens:
---------------
(1) Liens for taxes, assessments or governmental charges or claims
either (a) not delinquent or (b) contested in good faith by appropriate
proceedings and as to which the Company or the Restricted Subsidiaries
shall have set aside on its books such reserves as may be required pursuant
to GAAP;
(2) statutory Liens of landlords and Liens of carriers, warehousemen,
mechanics, suppliers, materialmen, repairmen and other Liens imposed by law
incurred in the ordinary course of business for sums not yet delinquent or
being contested in good faith, if such reserve or other appropriate
provision, if any, as shall be required by GAAP shall have been made in
respect thereof;
(3) Liens incurred or deposits made in the ordinary course of
business in connection with workers' compensation, unemployment insurance
and other types of social security, or to secure the performance of
tenders, statutory obligations, surety and appeal bonds, bids, leases,
government contracts, performance and return-of-money bonds and other
similar obligations (exclusive of obligations for the payment of borrowed
money);
(4) Liens upon specific items of inventory or other goods and
proceeds of any Person securing such Person's obligations in respect of
bankers' acceptances issued or created for the account of such Person to
facilitate the purchase, shipment or storage of such inventory or other
goods;
(5) judgment Liens not giving rise to a Default so long as such Liens
are adequately bonded and any appropriate legal proceedings which may have
been duly initiated for the review of such judgment have not been finally
terminated or the period within which the proceedings may be initiated has
not expired;
(6) easements, rights-of-way, zoning restrictions and other similar
charges, restrictions or encumbrances in respect of real property or
immaterial imperfections of title which do not, in the aggregate, impair in
any material respect the ordinary conduct of the business of the Company
and the Restricted Subsidiaries taken as a whole;
(7) Liens securing reimbursement obligations with respect to
commercial letters of credit which encumber documents and other assets
relating to such letters of credit and products and proceeds thereof;
(8) Liens encumbering deposits made to secure obligations arising
from statutory, regulatory, contractual or warranty requirements of the
Company or any Restricted Subsidiary, including rights of offset and set-
off; and
-22-
(9) bankers' Liens, rights of setoff and other similar Liens existing
solely with respect to cash and Cash Equivalents on deposit in one or more
of accounts maintained by the Company or any Restricted Subsidiary, in each
case granted in the ordinary course of business in favor of the bank or
banks with which such accounts are maintained, securing amounts owing to
such bank with respect to cash management and operating account
arrangements, including those involving pooled accounts and netting
arrangements; provided that in no case shall any such Liens secure (either
directly or indirectly) the repayment of any Indebtedness.
"Person" means any individual, corporation, partnership, limited
------
liability company, joint venture, incorporated or unincorporated association,
joint-stock company, trust, unincorporated organization or government or other
agency or political subdivision thereof or other entity of any kind.
"Plan of Liquidation" with respect to any Person, means a plan that
-------------------
provides for, contemplates or the effectuation of which is preceded or
accompanied by (whether or not substantially contemporaneously, in phases or
otherwise): (1) the sale, lease, conveyance or other disposition of all or
substantially all of the assets of such Person otherwise than as an entirety or
substantially as an entirety; and (2) the distribution of all or substantially
all of the proceeds of such sale, lease, conveyance or other disposition of all
or substantially all of the remaining assets of such Person to holders of
Capital Stock of such Person.
"Planned Asset Sales" means sales of vacant land and land and
-------------------
buildings in Petaluma, California, land and a building in Wexford, Ireland and
future asset sales consummated within twelve months after the Issue Date, which
future asset sales shall not have aggregate proceeds in excess of $5.0 million.
"Preferred Stock" means, with respect to any Person, any and all
---------------
preferred or preference stock or other preferred equity interests (however
designated) of such Person whether now outstanding or issued after the Issue
Date.
"principal" means, with respect to the Notes, the principal of, and
---------
premium, if any, on the Notes.
"Private Exchange Notes" has the meaning given such term in the
----------------------
Registration Rights Agreement.
"Private Placement Legend" means the legend initially set forth on the
------------------------
Restricted Notes in the form set forth in Section 2.02(a).
"Public Equity Offering" means an underwritten public offering of
----------------------
Qualified Capital Stock of Company generating gross proceeds of at least $50.0
million pursuant to an effective registration statement filed under the
Securities Act.
-23-
"Purchase Money Indebtedness" means Indebtedness of the Company or any
---------------------------
Restricted Subsidiary incurred for the purpose of financing all or any part of
the purchase price of any assets (including, without limitation, Capital Stock
of any Person) or the cost of installation, construction or improvement of any
property or assets and any refinancing thereof; provided, however, that any Lien
arising in connection with any such Indebtedness shall be limited to the
specified assets being financed (including the assets of any person whose
Capital Stock is acquired) or, in the case of real property or fixtures,
including additions and improvements, the real property to which such asset is
attached; provided, further, however, that such Indebtedness is incurred within
90 days after such acquisition of such asset by the Company or such Restricted
Subsidiary.
"QIB" means a "qualified institutional buyer" as defined in Rule 144A.
---
"Qualified Capital Stock" means Capital Stock of the Company other
-----------------------
than Disqualified Capital Stock; provided that such Capital Stock shall not be
deemed Qualified Capital Stock to the extent sold or owed to a Subsidiary of the
Company or financed, directly or indirectly, using funds (A) borrowed from the
Company or any Subsidiary of the Company until and to the extent such borrowing
is repaid or (B) contributed, extended, guaranteed or advanced by the Company or
any Subsidiary of the Company (including, without limitation, in respect of any
employee stock ownership or benefit plan).
"redeem" means to redeem, repurchase, purchase, defease, retire,
------
discharge or otherwise acquire or retire for value; and "redemption" shall have
a correlative meaning.
"Redemption Date," when used with respect to any Note to be redeemed,
---------------
means the date fixed for such redemption by or pursuant to this Indenture.
"Redemption Price," when used with respect to any Note to be redeemed,
----------------
means the price at which such Note is to be redeemed pursuant to this Indenture.
"Redesignation" has the meaning given to that term in Section 4.13
-------------
hereof; and "Redesignate" has a correlative meaning.
-----------
"refinance" means to refinance, repay, prepay, replace, renew or
---------
refund.
"Refinancing Indebtedness" means Indebtedness of the Company or a
------------------------
Restricted Subsidiary issued in exchange for, or the proceeds from the issuance
and sale or disbursement of which are used substantially concurrently to redeem
or refinance in whole or in part, or constituting an amendment of, any
Indebtedness of the Company or any Restricted Subsidiary (the "Refinanced
Indebtedness") in a principal amount not in excess of the principal amount of
the Refinanced Indebtedness so repaid or amended (or, if such Refinancing
Indebtedness refinances Indebtedness under a revolving credit facility or other
agreement providing a commitment for subsequent borrowings, with a maximum
commitment not to exceed
-24-
the maximum commitment under such revolving credit facility or other agreement);
provided that:
(1) the Refinancing Indebtedness is the obligation of the same Person
as that of the Refinanced Indebtedness;
(2) if the Refinanced Indebtedness was subordinated to or pari passu
with the Notes or any Guarantees, as the case may be, then such Refinancing
Indebtedness, by its terms, is expressly pari passu with (in the case of
Refinanced Indebtedness that was pari passu with) or subordinate in right
of payment to (in the case of Refinanced Indebtedness that was subordinated
to) the Notes or any Guarantees, as the case may be, at least to the same
extent as the Refinanced Indebtedness;
(3) the Refinancing Indebtedness is scheduled to mature either (a) no
earlier than the Refinanced Indebtedness being repaid or amended or (b)
after the maturity date of the Notes;
(4) the portion, if any, of the Refinancing Indebtedness that is
scheduled to mature on or prior to the maturity date of the Notes has a
Weighted Average Life to Maturity at the time such Refinancing Indebtedness
is incurred that is equal to or greater than the Weighted Average Life to
Maturity of the portion of the Refinanced Indebtedness being repaid that is
scheduled to mature on or prior to the maturity date of the Notes; and
(5) the Refinancing Indebtedness is secured only to the extent, if at
all, and by the assets, that the Refinanced Indebtedness being repaid or
amended is secured.
"Register" has the meaning provided in Section 2.04.
--------
"Registrar" has the meaning provided in Section 2.04.
---------
"Registration" means, collectively, each offer of Notes registered
------------
pursuant to a Registration Statement.
"Registration Rights Agreement" means (i) with respect to the Initial
-----------------------------
Notes issued on the Issue Date, the Registration Rights Agreement, dated as of
the date hereof, between the Company and UBS AG, acting through its business
group UBS Warburg, and (ii) with respect to each issuance of Additional Notes in
a transaction exempt from the registration requirements of the Securities Act,
the registration rights agreement among the Company and the Persons purchasing
the Additional Notes.
"Registration Statement" means the Exchange Offer Registration
----------------------
Statement or a Shelf Registration Statement as defined and described in the
Registration Rights Agreement.
-25-
"Regular Record Date" for the interest payable on any Interest Payment
-------------------
Date means the September 1 or March 1 (whether or not a Business Day), as the
case may be, next preceding such Interest Payment Date.
"Regulation S" means Regulation S under the Securities Act.
------------
"Required Reports" has the meaning given such term in Section 4.17.
----------------
"Responsible Officer," when used with respect to the Trustee, means
-------------------
any vice president, any assistant vice president, any assistant treasurer, any
trust officer or assistant trust officer or any other officer of the Trustee
customarily performing functions similar to those performed by any of the above
designated officers in each case assigned to or employed by the corporate trust
department of the Trustee and also means, with respect to a particular corporate
trust matter, any other officer to whom such matter is referred because of his
or her knowledge of and familiarity with the particular subject and who shall
have direct responsibility for the administration of this Indenture.
"Restricted Definitive Registered Note" means a Definitive Registered
-------------------------------------
Note bearing the Private Placement Legend issued in registered form without
coupons in a principal amount of (euro)1,000 or integral multiples thereof.
"Restricted Global Notes" means the U.S. Global Note(s) and the
-----------------------
International Global Note(s).
"Restricted Notes" means the Restricted Definitive Registered Notes
----------------
and the Restricted Global Note(s).
"Restricted Payment" means any of the following:
------------------
(1) the declaration or payment of any dividend or any other
distribution on Capital Stock of the Company or any Restricted Subsidiary
or any payment made to the direct or indirect holders (in their capacities
a such) of Capital Stock of the Company or any Restricted Subsidiary (other
than (a) dividends or distributions payable solely in Qualified Capital
Stock and (b) in the case of Restricted Subsidiaries, dividends or
distributions payable to the Company or to a Restricted Subsidiary and pro
rata dividends or distributions payable to minority stockholders of any
Restricted Subsidiary);
(2) the redemption of any Capital Stock of the Company or any
Restricted Subsidiary (other than any such Capital Stock held by the
Company or any Restricted Subsidiary);
(3) any Investment other than a Permitted Investment; or
(4) any redemption prior to the scheduled maturity or prior to any
scheduled repayment of principal or sinking fund payment, as the case may
be, in respect of Subordinated Indebtedness.
The amount of any Restricted Payment that is not paid in cash shall be the Fair
Market Value thereof at the time of the Restricted Payment.
"Restricted Payments Basket" has the meaning given to that term in
--------------------------
Section 4.05(a) hereof.
"Restricted Subsidiary" means any Subsidiary of the Company other than
---------------------
an Unrestricted Subsidiary.
"Revolving Credit Facility" means a revolving credit facility entered
-------------------------
into by the Company and one or more of its Subsidiaries and a lender or group of
lenders, including any notes, guarantees, collateral and security documents,
instruments and agreements executed in connection therewith (including Hedging
Obligations related to the Indebtedness incurred thereunder), and in each case
as amended or refinanced from time to time, including any agreement or
agreements extending the maturity of, refinancing, replacing or otherwise
restructuring (including increasing the amount of borrowings or other
Indebtedness outstanding or available to be borrowed thereunder) all or any
portion of the Indebtedness under such agreement, and any successor or
replacement agreement or agreements with the same or any other agents, creditor,
lender or group of creditors or lenders.
"Rule 144A" means Rule 144A under the Securities Act.
---------
"S&P" means Standard & Poor's Ratings Services, a division of the
▇▇▇▇▇▇-▇▇▇▇ Companies, Inc., and its successors.
"Sale and Leaseback Transactions" means with respect to any Person an
-------------------------------
arrangement with any bank, insurance company or other lender or investor or to
which such lender or investor is a party, providing for the leasing by such
Person of any asset of such Person which has been or is being sold or
transferred by such Person to such lender or investor or to any Person to whom
funds have been or are to be advanced by such lender or investor on the security
of such asset.
"SEC" means the United States Securities and Exchange Commission.
---
"Secretary's Certificate" means a certificate signed by the Secretary
-----------------------
of the Company.
"Securities Act" means the United States Securities Act of 1933, as
--------------
amended.
-27-
"Shelf Registration Statement" means the Shelf Registration Statement
----------------------------
as defined in the Registration Rights Agreement.
"Special Charges" includes all special charges and inventory write-
---------------
downs recorded through December 31, 2000 as well as anticipated special charges
to be recorded in the quarter ended March 31, 2001 not to exceed $15.0 million.
"Stated Maturity" means, with respect to any installment of interest
---------------
or principal on any Indebtedness, the date on which such payment of interest or
principal was scheduled to be paid in the original documentation governing such
Indebtedness, and shall not include any contingent obligations to repay, redeem
or repurchase any such interest or principal prior to the date originally
scheduled for the payment thereof.
"Subordinated Indebtedness" means Indebtedness of the Company or any
-------------------------
Guarantor that is subordinated in right of payment to the Notes or any
Guarantees, respectively.
"Subsidiary" means, with respect to any Person:
----------
(1) any corporation, limited liability company, association or other
business entity of which more than 50% of the total voting power of the
Capital Stock entitled (without regard to the occurrence of any
contingency) to vote in the election of the Board of Directors thereof is
at the time owned or controlled, directly or indirectly, by such Person or
one or more of the other Subsidiaries of that Person (or a combination
thereof); and
(2) any partnership (a) the sole general partner or the managing
general partner of which is such Person or a Subsidiary of such Person or
(b) the only general partners of which are such Person or of one or more
Subsidiaries of such Person (or any combination thereof).
Unless otherwise specified, "Subsidiary" refers to a Subsidiary of the
Company.
"Successor" has the meaning given such term in Section 5.01.
---------
"TIA" or "Trust Indenture Act" means the Trust Indenture Act of 1939,
--- -------------------
as amended (15 U.S. Code Sections 77aaa-77bbb), as in effect on the date this
Indenture was executed, except as provided in Section 9.06.
"Total Tangible Assets" means, as of any date, the total amount of
---------------------
tangible assets of the Company and the Restricted Subsidiaries on a consolidated
basis at the end of the fiscal quarter immediately preceding such date.
-28-
"Trustee" means the party named as such in the first paragraph of this
-------
Indenture until a successor replaces it in accordance with the provisions of
Article Seven of this Indenture and thereafter means such successor.
"Unrestricted Definitive Registered Note" means a Definitive
---------------------------------------
Registered Note not bearing the Private Placement Legend issued in registered
form without coupons in a principal amount of (euro)1,000 or integral multiples
thereof, including, without limitation, the Exchange Notes.
"Unrestricted Global Note" means one or more Global Note(s) not
------------------------
bearing the Private Placement Legend issued in registered form without interest
coupons in a principal amount of (euro)1,000 or integral multiples thereof, and
deposited with the Common Depositary, including, without limitation, the
Exchange Notes.
"Unrestricted Notes" means the Unrestricted Global Notes and the
------------------
Unrestricted Definitive Registered Notes.
"Unrestricted Subsidiaries" means (1) Sola Optical China Ltd., and any
-------------------------
other Subsidiary that has been Designated an Unrestricted Subsidiary, in each
case, until such Subsidiary is Redesignated a Restricted Subsidiary, and (2) any
Subsidiary of an Unrestricted Subsidiary.
"U.S. Global Note(s)" means one or more Global Note(s) bearing the
------------------
Private Placement Legend in registered form without interest coupons that will
be issued in a principal amount equal to the outstanding principal amount of the
Initial Notes sold in reliance on Rule 144A and deposited with the Common
Depositary.
"Voting Stock" with respect to any Person, means securities of any
------------
class of Capital Stock of such Person entitling the holders thereof (whether at
all times or only so long as no senior class of stock or other relevant equity
interest has voting power by reason of any contingency) to vote in the election
of members of the Board of Directors of such Person.
"Weighted Average Life to Maturity" when applied to any Indebtedness
---------------------------------
at any date, means the number of years obtained by dividing (1) the sum of the
products obtained by multiplying (a) the amount of each then remaining
installment, sinking fund, serial maturity or other required payment of
principal, including payment at final maturity, in respect thereof by (b) the
number of years (calculated to the nearest one-twelfth) that will elapse between
such date and the making of such payment by (2) the then outstanding principal
amount of such Indebtedness.
"Wholly-Owned Restricted Subsidiary" means a Restricted Subsidiary of
----------------------------------
which 100% of the Capital Stock (except for directors' qualifying shares or de
minimis interests owned by other Persons solely due to local law requirements
that there be more than one
-29-
stockholder, but which interest is not in excess of what is required for such
purpose) is owned directly by the Company or through one or more Wholly-Owned
Restricted Subsidiaries.
SECTION 1.02. Incorporation by Reference of Trust Indenture Act.
-------------------------------------------------
Whenever this Indenture refers to a provision of the TIA, the provision is
incorporated by reference in and made a part of this Indenture. The following
TIA terms used in this Indenture have the following meanings:
"indenture notes" means the Notes;
"indenture note holder" means a Holder or a Noteholder;
"indenture to be qualified" means this Indenture;
"indenture trustee" or "institutional trustee" means the Trustee; and
"obligor" on the indenture securities means the Company or any other
obligor on the Notes.
All other TIA terms used in this Indenture that are defined by the
TIA, defined by TIA reference to another statute or defined by a rule of the
Commission and not otherwise defined herein have the meanings assigned to them
therein.
SECTION 1.03. Rules of Construction. Unless the context otherwise
---------------------
requires:
(i) a term has the meaning assigned to it;
(ii) an accounting term not otherwise defined has the meaning
assigned to it in accordance with GAAP;
(iii) "or" is not exclusive;
(iv) words in the singular include the plural, and words in the
plural include the singular;
(v) provisions apply to successive related events and transactions;
(vi) "herein," "hereof" and other words of similar import refer to
this Indenture as a whole and not to any particular Article, Section or
other subdivision;
(vii) all ratios and computations based on GAAP contained in this
Indenture shall be computed in accordance with the definition of GAAP set
forth in Section 1.01;
-30-
(viii) all references to Sections or Articles refer to Sections or
Articles of this Indenture unless otherwise indicated;
(ix) all references to "(euro)," or "Euros" refer to the lawful
currency of a Euro currency country, unless the content expressly
contemplates otherwise; and
(x) all references to "$", "Dollars", "U.S. Dollars" or money refer
to the lawful currency of the United States, unless the content expressly
contemplates otherwise.
ARTICLE TWO
THE NOTES
SECTION 2.01. The Notes.
---------
(a) Form and Dating. The Notes and the Trustee's certificate of
---------------
authentication thereon shall be substantially in the form annexed hereto as
Exhibit A with such appropriate insertions, omissions, substitutions and other
---------
variations as are required or permitted by this Indenture. The Notes may have
notations, legends or endorsements required by law, stock exchange agreements to
which the Company is subject or usage. The Company shall approve the form of the
Notes and any notation, legend or endorsement on the Notes. Each Note shall be
dated the date of its authentication.
The terms and provisions contained in the forms of the Notes annexed
hereto as Exhibit A shall constitute, and are hereby expressly made, a part of
---------
this Indenture. The Global Notes and the Definitive Registered Notes shall be
issued only in registered form. The Notes shall be issued without coupons. The
Notes shall be issued only in denominations of (euro)1,000 principal amount or
any integral multiple thereof. To the extent applicable, the Company, any
Guarantor, and the Trustee, by their execution and delivery of this Indenture,
expressly agree to such terms and provisions and to be bound thereby.
(b) Global Notes. Initial Notes offered and sold in reliance on Rule
------------
144A shall be issued in the form of one or more U.S. Global Notes, deposited
with the Common Depositary, as custodian for the Depositaries, duly executed by
the Company and authenticated by the Trustee as hereinafter provided. The
aggregate principal amount of the U.S. Global Note may from time to time be
increased or decreased by adjustments made on Schedule A to each Global Note, as
hereinafter provided.
Initial Notes offered and sold in offshore transactions in reliance on
Regulation S shall be issued initially in the form of one or more International
Global Notes deposited
-31-
with the Common Depositary, as custodian for the Depositaries, duly executed by
the Company and authenticated by the Trustee as hereinafter provided. The
aggregate principal amount of the International Global Note may from time to
time be increased or decreased by adjustments made on Schedule A to each Global
Note, as hereinafter provided.
Unrestricted Global Notes shall be issued in accordance with Section
2.07(b)(iii), 2.07(d)(iii) and 2.07(f), and shall be deposited with the Common
Depositary, as custodian for the Depositaries or their respective nominees, duly
executed by the Company and authenticated by the Trustee as hereinafter
provided.
Each Global Note shall represent such of the outstanding Notes as
shall be specified therein and each shall provide that it shall represent the
aggregate principal amount outstanding of Notes from time to time endorsed
thereon and that the aggregate principal amount of outstanding Notes represented
thereby may from time to time be reduced or increased, as appropriate, to
reflect exchanges, transfers of interests therein, redemptions and repurchases
in accordance with the terms of this Indenture. Any endorsement of Schedule A to
a Global Note to reflect the amount of any increase or decrease in the aggregate
principal amount of Notes represented thereby shall be made by the Trustee, the
Paying Agent or the Registrar in accordance with Sections 2.07 (Transfer and
Exchange), 3.04 (Notice of Redemption), 4.11 (Limitation on Asset Sales) and
4.12 (Repurchase of Notes upon a Change of Control) hereof.
Except as set forth in Section 2.07(a) hereof, the Global Notes may be
transferred, in whole and not in part, only to a successor of the Common
Depositary.
(c) Definitive Registered Notes. Definitive Registered Notes issued
---------------------------
upon transfer of a Book-Entry Interest or a Definitive Registered Note, or in
exchange for a Book-Entry Interest or a Definitive Registered Note, shall be
issued in accordance with this Indenture, duly executed by the Company and
authenticated by the Trustee as hereinafter provided. The Definitive Registered
Notes shall be typed, printed, lithographed or engraved or produced by any
combination of these methods or may be produced in any other manner permitted by
the rules of any securities exchange on which the Notes may be listed, all as
determined by the Officers executing such Notes, as evidenced by their execution
of such Notes.
(d) Book-Entry Provisions. Participants and Indirect Participants
---------------------
shall have no rights either under this Indenture or under any Global Note with
respect to such Global Note held on their behalf by the Common Depositary.
Notwithstanding the foregoing, nothing herein shall prevent the Company, the
Trustee or any Agent of the Company or the Trustee from giving effect to any
written certification, proxy or other authorization furnished by the Depositary
or impair, as between the Depositaries and their respective Participants, the
operation of customary practices of such Depositaries governing the exercise of
the rights of an owner of a beneficial interest in any Global Note. The
Applicable Procedures shall be ap-
-32-
plicable to Book-Entry Interests that are held by the Participants through
Euroclear or Clearstream.
SECTION 2.02. Restrictive Legends.
-------------------
(a) Private Placement Legend. Except as permitted by subparagraph (b)
------------------------
below, each Global Note and each Definitive Registered Note (and all Notes
issued in exchange therefor or substitution thereof) issued under this Indenture
shall bear a legend in substantially the following form:
"THIS NOTE (OR ITS PREDECESSOR) HAS NOT BEEN REGISTERED UNDER THE U.S.
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") AND, ACCORDINGLY, MAY
NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHIN THE UNITED STATES
OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS, EXCEPT AS SET FORTH IN
THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST
HEREIN, THE HOLDER:
AGREES THAT IT WILL NOT RESELL OR OTHERWISE TRANSFER THIS NOTE EXCEPT (A)
TO THE COMPANY OR ANY OF ITS SUBSIDIARIES, (B) TO A PERSON WHOM THE HOLDER
REASONABLY BELIEVES IS A QIB PURCHASING FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF A QIB IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A
UNDER THE SECURITIES ACT, (C) IN AN OFFSHORE TRANSACTION MEETING THE
REQUIREMENTS OF RULE 903 OR 904 UNDER THE SECURITIES ACT, (D) IN A
TRANSACTION MEETING THE REQUIREMENTS OF RULE 144 UNDER THE SECURITIES ACT,
(E) TO AN INSTITUTIONAL ACCREDITED INVESTOR THAT, PRIOR TO SUCH TRANSFER,
FURNISHES TO THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS
AND AGREEMENTS RELATING TO THE TRANSFER OF THIS NOTE (THE FORM OF WHICH
LETTER CAN BE OBTAINED FROM THE TRUSTEE) AND, IF SUCH TRANSFER IS IN
RESPECT OF AN AGGREGATE PRINCIPAL AMOUNT OF NOTES LESS THAN (euro)250,000,
AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY THAT SUCH TRANSFER IS IN
COMPLIANCE WITH THE SECURITIES ACT, (F) IN ACCORDANCE WITH ANOTHER
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND
BASED UPON AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY) OR (G) PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND, IN
EACH CASE, IN ACCORDANCE WITH THE APPLICABLE SECURITIES LAWS OF ANY STATE
OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION, AND
-33-
AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS NOTE OR AN
INTEREST HEREIN IS TRANSFERRED BY IT A NOTICE SUBSTANTIALLY TO THE EFFECT
OF THIS LEGEND.
AS USED HEREIN, THE TERMS "OFFSHORE TRANSACTION," "UNITED STATES" AND "U.S.
PERSON" HAVE THE MEANINGS GIVEN TO THEM BY RULE 902 OF REGULATION S UNDER THE
SECURITIES ACT.
(b) Notwithstanding the foregoing, any Global Note or Definitive
Registered Note issued pursuant to subparagraph (b)(iii), (c)(ii), (c)(iii),
(d)(ii), (d)(iii) or (f) of Section 2.07 (and all Notes issued in exchange
therefor or substitution thereof) shall not bear the Private Placement Legend.
Each Global Note, if the Company so elects, may also bear the
following legend on the face thereof:
THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A COMMON
DEPOSITARY OR A NOMINEE OF A COMMON DEPOSITARY. THIS NOTE IS NOT
EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER
THAN THE COMMON DEPOSITARY OR ITS NOMINEE EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS NOTE
(OTHER THAN A TRANSFER OF THIS NOTE AS A WHOLE TO A COMMON DEPOSITARY
OR A NOMINEE OF THE COMMON DEPOSITARY OR TO THE DEPOSITARY OR ANOTHER
NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE.
THIS NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE
GOVERNING THIS NOTE) IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL
OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY
CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS
HEREON AS MAY BE REQUIRED PURSUANT TO SECTIONS 2.01, 2.07, 2.08, 3.04,
AND 4.12 OF THE INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN
WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.07 OF THE INDENTURE, (III)
THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION
PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (IV) THIS GLOBAL NOTE
MAY BE TRANSFERRED TO A SUCCESSOR COMMON DEPOSITARY WITH THE PRIOR
WRITTEN CONSENT OF THE COMPANY.
-34-
SECTION 2.03. Execution and Authentication. The Notes shall be
----------------------------
executed by an Officer or an authorized signatory as identified in an Officers'
Certificate (pursuant to a power of attorney or other similar instrument). The
signature of any such Officer (or authorized signatory) on the Notes shall be by
manual or facsimile signature in the name and on behalf of the Company.
If an Officer whose signature is on a Note no longer holds that office
at the time the Trustee or authenticating agent authenticates the Note, the Note
shall be valid nevertheless.
A Note shall not be valid until the Trustee or authenticating agent
manually signs the certificate of authentication on the Note. The signature
shall be conclusive evidence that the Note has been authenticated under this
Indenture.
The Trustee or an authenticating agent shall, upon receipt of a
Company Order, authenticate (i) Initial Notes for original issue in unlimited
aggregate principal amount, of which (euro)205,000,000 are being issued on the
Issue Date, (ii) Private Exchange Notes from time to time only in exchange for a
like principal amount of Initial Notes, (iii) Unrestricted Notes from time to
time only (x) in exchange for a like principal amount of Initial Notes or (y) in
an aggregate principal amount of not more than the excess of (euro)205,000,000
over the sum of the aggregate principal amount of (A) Initial Notes then
outstanding, (B) Private Exchange Notes then outstanding and (C) Unrestricted
Notes issued in accordance with (iii)(x) above, and (iv) Additional Notes issued
pursuant to Section 2.14 hereof. Each such Company Order shall specify the
amount of Notes to be authenticated and the date on which the Notes are to be
authenticated, whether the Notes are to be Initial Notes, Private Exchange Notes
or Unrestricted Notes and whether the Notes are to be issued as Definitive
Registered Notes or Global Notes or such other information as the Trustee may
reasonably request. In addition, with respect to authentication pursuant to
clauses (ii) or (iii) of the first sentence of this paragraph, the first such
written order from the Issuer shall be accompanied by an Opinion of Counsel of
the Issuer in a form reasonably satisfactory to the Trustee stating that the
issuance of the Private Exchange Notes or the Unrestricted Notes, as the case
may be, does not give rise to an Event of Default, complies with this Indenture
and has been duly authorized by the Issuer.
The Trustee may appoint an authenticating agent to authenticate Notes.
An authenticating agent may authenticate Notes whenever the Trustee may do so.
Each reference in this Indenture to authentication by the Trustee includes
authentication by such authenticating agent. An authenticating agent has the
same rights as an Agent to deal with the Company or an Affiliate of the Company.
The Notes shall be issuable only in registered form without coupons
and only in minimum denominations of (euro) 1,000 in principal amount and any
integral multiples of (euro)1,000 in excess thereof.
-35-
SECTION 2.04. Registrar and Paying Agent. The Company shall
--------------------------
maintain an office or agency in London, England, the Borough of Manhattan, The
City of New York and, so long as the Notes are listed on the Luxembourg Stock
Exchange and the rules of such stock exchange require, in Luxembourg, where (a)
Notes may be presented or surrendered for registration of transfer or for
exchange ("Registrar"), (b) Notes may be presented or surrendered for payment
---------
(the "Paying Agent") and (c) notices and demands in respect of the Notes and
------------
this Indenture may be served. The Registrar shall keep a register or registers
of the Notes and of their transfer and exchange. The Company, upon notice to the
Trustee, may appoint one or more co-Registrars and one or more additional Paying
Agents. The term "Paying Agent" includes any additional Paying Agent. Except as
provided herein, the Company or any Subsidiary may act as Paying Agent,
Registrar or co-Registrar. The Company shall enter into an appropriate agency
agreement with any Agent not a party to this Indenture and the agreement shall
implement the provisions of this Indenture that relate to such Agent and shall
incorporate the provisions of the TIA. Without limiting the foregoing, each such
agreement appointing a Paying Agent must contain provisions substantially to the
effect of Section 2.07 hereof. The Company shall notify the Trustee in writing
of the name and address of any such Agent. If the Company fails to maintain a
Registrar or Paying Agent or fails to give the foregoing notice, the Trustee
shall act as such and shall be entitled to appropriate compensation in
accordance with Section 7.07.
The Registrar shall keep a register (the "Register") of the Definitive
--------
Registered Notes and of their transfer and exchange. Any notice to be given
under this Indenture or under the Notes by the Trustee or the Company to
Noteholders shall be mailed by first class mail to each Holder of Definitive
Registered Notes at its address as it appears at the time of such mailing in the
Register, and to the Holders of the Global Notes.
The Company hereby appoints the corporate trust office of the Trustee
in New York located at the address set forth in Section 10.02 as Registrar,
Paying Agent and Transfer Agent in New York with respect to Definitive
Registered Notes. So long as the Notes are listed on the Luxembourg Stock
Exchange and the rules of such stock exchange so require, the Company shall
maintain a Paying Agent and Transfer Agent in Luxembourg.
The Company, any Subsidiary of the Company, or any Affiliate of any of
them may act as Registrar or co-Registrar, and/or agent for service of notice
and demands.
If, at any time, the Trustee is not the Registrar, the Registrar shall
make available to the Trustee on or before each Interest Payment Date and at
such other times as the Trustee may reasonably request, the names and addresses
of the Holders as they appear in the Register.
SECTION 2.05. Holders to Be Treated as Owners; Payments of Interest.
-----------------------------------------------------
The Company, the Paying Agents, the Registrar, the Trustee and any agent of the
Company, the Paying Agents, the Registrar or the Trustee may deem and treat the
person in whose name a
-36-
Note is registered as the absolute owner of such Note for the purpose of
receiving payment of or on account of the principal of and, subject to the
provisions of this Indenture, interest, Liquidated Damages, if any on such Note
and for all other purposes; and neither the Company, any Paying Agent, the
Registrar, the Trustee nor any agent of the Company, the Paying Agent, the
Registrar or the Trustee shall be affected by any notice to the contrary. All
such payments so made to any such Person, or upon his order, shall be valid,
and, to the extent of the sum or sums so paid, effectual to satisfy and
discharge the liability for moneys payable upon any Note.
SECTION 2.06. Paying Agent to Hold Money in Trust. Not later than
-----------------------------------
12:00 noon (New York Time) one Business Day prior to each due date of the
principal and interest on any Notes, the Company shall deposit with the Paying
Agent money in immediately available funds sufficient to pay such principal and
interest so becoming due on the due date for payment under the Notes. The
Company shall require each Paying Agent other than the Trustee to agree in
writing that such Paying Agent shall hold in trust for the benefit of the
Holders or the Trustee all money held by the Paying Agent for the payment of
principal of and interest on the Notes (whether such money has been paid to it
by the Company or any other obligor on the Notes), and such Paying Agent shall
promptly notify the Trustee of any default by the Company (or any other obligor
on the Notes) in making any such payment. Money held in trust by any Paying
Agent need not be segregated except as required by law and in no event shall any
Paying Agent be liable for any interest on any money received by it hereunder.
The Company at any time may require a Paying Agent to pay all money held by it
to the Trustee and account for any funds disbursed, and the Trustee may at any
time during the continuance of any payment default, upon written request to a
Paying Agent, require such Paying Agent to pay all money held by it to the
Trustee and to account for any funds disbursed. Upon doing so, the Paying Agent
shall have no further liability for the money so paid over to the Trustee.
SECTION 2.07. Transfer and Exchange.
---------------------
(a) Transfer and Exchange of Global Notes. Transfers of a Global Note
-------------------------------------
shall be limited to transfers of such Global Note in whole, but not in part, to
a successor Common Depositary, any or both of the Depositaries, their respective
successors or their respective nominees.
All Global Notes will be exchanged by the Company for Definitive
Registered Notes if (i) either Euroclear or Clearstream Banking notifies the
Company that it is unwilling or unable to continue to act as a Depositary and a
successor Depositary is not appointed by the Company within 120 days; (ii)
Euroclear or Clearstream Banking so requests following an Event of Default
hereunder; (iii) the Company in its sole discretion determines that the Global
Notes should be exchanged (in whole but not in part) for Definitive Registered
Notes; or (iv) the owner of a Book-Entry Interest requests such exchange in
writing delivered either
-37-
through Euroclear or Clearstream Banking following an Event of Default
hereunder. Upon the occurrence of any of the preceding events, Definitive
Registered Notes shall be issued in such names and in any approved denominations
as Euroclear and/or Clearstream Banking shall instruct the Registrar.
Global Notes may also be exchanged or replaced, in whole or in part,
as provided in Sections 2.08 and 2.10. Every Note authenticated and delivered in
exchange for, or in lieu of, a Global Note or any portion thereof, pursuant to
Sections 2.08 and 2.10 hereof, shall be authenticated and delivered in the form
of, and shall be, a Global Note. A Global Note may not be exchanged for another
Note other than as provided in this Section 2.07(a).
(b) Transfer and Exchange of Book-Entry Interests Between Global
------------------------------------------------------------
Notes. Transfers of Book-Entry Interests between Global Notes shall require
-----
compliance with subparagraph (i) below, as well as one or more of the other
following subparagraphs, as applicable:
(i) General Provisions Applicable to Transfers and Exchanges of Book-
----------------------------------------------------------------
Entry Interests Between Global Notes. In connection with all transfers and
------------------------------------
exchanges of Book-Entry Interests (other than transfers of Book-Entry
Interests in connection with which the transferor takes delivery thereof in
the form of a Book-Entry Interest in the same Global Note or transfers or
exchanges resulting in the delivery of one or more Definitive Registered
Notes), the transferor of such Book-Entry Interest must deliver to the
Registrar (1) a written and/or electronic order from a Participant or an
Indirect Participant given to either Depositary in accordance with the
Applicable Procedures directing such Depositary to debit or cause to be
debited a Book-Entry Interest in a Global Note in an amount equal to the
Book-Entry Interest to be transferred or exchanged, (2) a written and/or
electronic order from a Participant or an Indirect Participant given to
either Depositary in accordance with the Applicable Procedures directing
such Depositary to credit or cause to be credited a Book-Entry Interest in
another Global Note in an amount equal to the Book-Entry Interest to be
transferred or exchanged and (3) written and/or electronic instructions
given in accordance with the Applicable Procedures containing information
regarding the Participant account to be credited with such increase.
The requirements of this Section 2.07(b)(i) shall be deemed to have
been satisfied in connection with the Exchange Offer upon receipt by the
Registrar of instructions contained in a Letter of Transmittal delivered by
any Holder tendering Book-Entry Interests in a Restricted Global Note in
the Exchange Offer.
(ii) Transfer of Book-Entry Interests to Another Restricted Global
-------------------------------------------------------------
Note. A Book-Entry Interest in any Restricted Global Note may be
----
transferred to a Person who takes delivery thereof in the form of a
Book-Entry Interest in a different Restricted
-38-
Global Note if the transfer complies with the requirements of Section
2.07(b)(i) above and the Registrar receives the following:
(A) if the transferee will take delivery in the form
of a Book-Entry Interest in the U.S. Global Note, then the
transferor must deliver a certificate in the form of Exhibit B
---------
hereto, including the certifications in item (1) or (3)
thereof; and
(B) if the transferee will take delivery in the form
of a Book-Entry Interest in an International Global Note, then
the transferor must deliver a certificate in the form of
Exhibit B hereto, including the certifications in item (2)
---------
thereof.
Upon satisfaction of the conditions set forth in this Section
2.07(b)(ii), the Registrar shall (i) instruct the Common Depositary to
deliver the relevant Global Note(s) to the Trustee, (ii) instruct the
Trustee to endorse (and the Trustee shall endorse) Schedule A to the
relevant Global Note(s) to reflect the relevant increase or decrease in
the principal amount of such Global Note resulting from the applicable
transfer, and (iii) thereafter, instruct the Trustee to return (and the
Trustee shall return) the Global Note(s) to the Common Depositary,
together with all information regarding the Participant accounts to be
credited and debited in connection with such transfer.
(iii) Transfer and Exchange of Book-Entry Interests in a
--------------------------------------------------
Restricted Global Note for Book-Entry Interests in an Unrestricted
------------------------------------------------------------------
Global Note. A Book-Entry Interest in any Restricted Global Note may be
-----------
exchanged by any holder thereof for a Book-Entry Interest in an
Unrestricted Global Note or transferred to a Person who takes delivery
thereof in the form of a Book-Entry Interest in an Unrestricted Global
Note if the exchange or transfer complies with the requirements of
Section 2.07(b)(i) above and:
(A) such exchange or transfer is effected pursuant to the
Exchange Offer in accordance with the Registration Rights
Agreement and the holder of the Book-Entry Interest to be
transferred, in the case of an exchange, or the transferee, in
the case of a transfer, certifies in the applicable Letter of
Transmittal that it is not (1) a Broker-Dealer that acquired
the Book-Entry Interests tendered in the Exchange Offer
directly from the Company or an Affiliate of the Company, (2) a
Person participating in the distribution of the Exchange Notes
or (3) a Person who is an affiliate (as defined in Rule 144) of
the Company; or
(B) such transfer is effected pursuant to the Shelf
Registration Statement (as defined in the Registration Rights
Agreement) in accordance with the Registration Rights
Agreement or pursuant to another effective regis-
-39-
tration statement under the Securities Act and in compliance with the
prospectus delivery requirements of the Securities Act and the
transferor delivers a certificate in the form of Exhibit B hereto
---------
including the certifications contained in item (4) thereof; or
(C) such transfer is effected by a Broker-Dealer pursuant to the
Exchange Offer Registration Statement in accordance with the
Registration Rights Agreement.
Upon satisfaction of the conditions set forth in this Section
2.07(b)(iii), the Registrar shall (i) instruct the Common Depositary to
deliver the relevant Global Note(s) to the Trustee, (ii) instruct the
Trustee to endorse (and the Trustee shall endorse) Schedule A to the
relevant Global Note(s) to reflect the relevant increase or decrease in
principal amount of such Global Note resulting from the applicable
transfer, and (iii) thereafter, instruct the Trustee to return (and the
Trustee shall return) the Global Note(s) to the Common Depositary, together
with all information regarding the Participant accounts to be credited and
debited in connection with such transfer.
If any such transfer or exchange is effected pursuant to this Section
2.07(b)(iii) at a time when an Unrestricted Global Note has not yet been
issued, the Registrar shall so inform the Trustee and the Company and,
thereafter, the Company shall issue and, upon receipt of a Company Order
from the Company in accordance with Section 2.03 hereof, the Trustee shall
authenticate one or more Unrestricted Global Notes in an aggregate
principal amount equal to the aggregate principal amount of Book-Entry
Interests to be transferred or exchanged.
Book-Entry Interests in an Unrestricted Global Note cannot be
exchanged for, or transferred to Persons who take delivery thereof in the
form of, a Book-Entry Interest in a Restricted Global Note.
(c) Transfer or Exchange of Book-Entry Interests for Definitive
-----------------------------------------------------------
Registered Notes. In connection with a transfer or exchange of a Book-Entry
----------------
Interest for a Definitive Registered Note, the Registrar must receive (1) a
written and/or electronic order from a Participant or an Indirect Participant
given to either Depositary in accordance with the Applicable Procedures
directing such Depositary to debit or cause to be debited a Book-Entry Interest
in an amount equal to the Book-Entry Interest to be transferred or exchanged,
(2) a written order directing the Registrar to issue or cause to be issued a
Definitive Registered Note in an amount equal to the Book-Entry Interest to be
transferred or exchanged and (3) instructions containing information regarding
the Person in whose name such Definitive Registered Note shall be registered to
effect the transfer or exchange referred to above.
(i) Book-Entry Interests in Restricted Global Notes to Restricted
-------------------------------------------------------------
Definitive Registered Notes. A holder of a Book-Entry Interest in a
---------------------------
Restricted Global Note
-40-
may exchange such Book-Entry Interest for a Restricted Definitive
Registered Note or transfer such Book-Entry Interest to a Person who takes
delivery thereof in the form of a Restricted Definitive Registered Note, if
the exchange or transfer complies with the first paragraph of this Section
2.07(c) and:
(A) if the holder of such Book-Entry Interest in a Restricted
Global Note proposes to exchange such Book-Entry Interest for a
Restricted Definitive Registered Note, a certificate from such holder
in the form of Exhibit C hereto, including the certifications in item
---------
(1)(a) thereof;
(B) if such Book-Entry Interest is being transferred to a QIB in
accordance with Rule 144A under the Securities Act, a certificate to
the effect set forth in Exhibit B hereto, including the certifications
---------
in item (1) thereof;
(C) if such Book-Entry Interest is being transferred in an
offshore transaction in accordance with Rule 903 or Rule 904 under the
Securities Act, a certificate to the effect set forth in Exhibit B
---------
hereto, including the certifications in item (2) thereof;
(D) if such Book-Entry Interest is being transferred pursuant to
an exemption from the registration requirements of the Securities Act
in accordance with Rule 144 under the Securities Act, a certificate to
the effect set forth in Exhibit B hereto, including the certifications
---------
in item (3)(a) thereof;
(E) if such Book-Entry Interest is being transferred to the
Company or any of its Subsidiaries, a certificate to the effect set
forth in Exhibit B hereto, including the certifications in item (3)(b)
---------
thereof; or
(F) if such Book-Entry Interest is being transferred in reliance
on an exemption from the registration requirements of the Securities
Act other than those listed in subparagraphs (B) through (E) above, a
certificate to the effect set forth in Exhibit B hereto, including the
---------
certifications, certificates and Opinion of Counsel required by item
(3)(c) thereof, if applicable.
Upon satisfaction of the conditions set forth in this Section
2.07(c)(i), the Registrar shall (i) instruct the Common Depositary to
deliver the relevant Global Note(s) to the Trustee, (ii) instruct the
Trustee to endorse (and the Trustee shall endorse) Schedule A to the
relevant Global Note(s) to reflect the relevant decrease in the principal
amount of such Global Note resulting from the applicable transfer or
exchange, (iii) thereafter, instruct the Trustee to return (and the Trustee
shall return) the Global Notes to the Common Depositary, together with all
information regarding the Participant accounts to be debited in connection
with such exchange or transfer and (iv) deliver to the Registrar
instructions received by it from the relevant Depositary
-41-
that contain information regarding the Person in whose name Definitive
Registered Notes shall be registered to effect such transfer or exchange.
The Company shall issue and the Trustee shall authenticate one or more
Definitive Registered Notes in an aggregate principal amount equal to the
aggregate principal amount of Book-Entry Interests so transferred or
exchanged and in the names set forth in the instructions received by the
Registrar.
(ii) Book-Entry Interests in Restricted Global Notes to Unrestricted
---------------------------------------------------------------
Definitive Registered Notes. A holder of a Book-Entry Interest in a
---------------------------
Restricted Global Note may exchange such Book-Entry Interest for an
Unrestricted Definitive Registered Note or may transfer such Book-Entry
Interest to a Person who takes delivery thereof in the form of an
Unrestricted Definitive Registered Note if the exchange or transfer
complies with the first paragraph of this Section 2.07(c) and:
(A) such exchange or transfer is effected pursuant to the
Exchange Offer in accordance with the Registration Rights Agreement
and the holder of such Book-Entry Interest, in the case of an
exchange, or the transferee, in the case of a transfer, certifies in
the applicable Letter of Transmittal that it is not (1) a Broker-
Dealer that acquired the Book-Entry Interests tendered in the Exchange
Offer directly from the Company or an Affiliate of the Company, (2) a
Person participating in the distribution of the Exchange Notes or (3)
a Person who is an affiliate (as defined in Rule 144) of the Company;
(B) such transfer is effected pursuant to the Shelf Registration
Statement in accordance with the Registration Rights Agreement or
pursuant to another effective registration statement under the
Securities Act and in compliance with the prospectus delivery
requirements of the Securities Act and the transferor delivers a
certificate in the form of Exhibit B hereto including the
---------
certifications contained in item (4) thereof; or
(C) such transfer is effected by a Broker-Dealer pursuant to the
Exchange Offer Registration Statement in accordance with the
Registration Rights Agreement.
Upon satisfaction of the conditions set forth in this Section
2.07(c)(ii), the Registrar shall (i) instruct the Common Depositary to
deliver the relevant Global Note(s) to the Trustee, (ii) instruct the
Trustee to endorse (and the Trustee shall endorse) Schedule A to the
relevant Global Note(s) to reflect the relevant decrease in the principal
amount of such Global Note resulting from the applicable exchange or
transfer, (iii) thereafter, instruct the Trustee to return (and the Trustee
shall return) the Global Notes to the Common Depositary, together with all
information regarding the Participant accounts to be debited in connection
with such exchange or transfer and
-42-
(iv) deliver to the Registrar instructions received by it from the relevant
Depositary that contain information regarding the Person in whose name
Definitive Registered Notes shall be registered to effect such transfer or
exchange.
The Company shall issue and the Trustee shall authenticate one or more
Definitive Registered Notes in an aggregate principal amount equal to the
aggregate principal amount of Book-Entry Interests so transferred or
exchanged and in the names set forth in the instructions received by the
Registrar.
(iii) Book-Entry Interests in Unrestricted Global Notes to
----------------------------------------------------
Unrestricted Definitive Registered Notes. A holder of a Book-Entry Interest
----------------------------------------
in an Unrestricted Global Note may exchange such Book-Entry Interest for an
Unrestricted Definitive Registered Note or transfer such Book-Entry
Interest to a Person who takes delivery thereof in the form of an
Unrestricted Definitive Registered Note upon the satisfaction of the
conditions set forth in the first paragraph of this Section 2.07(c). Upon
satisfaction of the conditions set forth in this Section 2.07(c)(iii), the
Registrar shall (i) instruct the Common Depositary to deliver the relevant
Global Note(s) to the Trustee, (ii) instruct the Trustee to endorse (and
the Trustee shall endorse) Schedule A to the relevant Global Note(s) to
reflect the relevant decrease in the principal amount of such Global Note
resulting from the applicable transfer or exchange, (iii) thereafter,
instruct the Trustee to return (and the Trustee shall return) the Global
Note(s) to the Common Depositary, together with all information regarding
the Participant accounts to be debited in connection with such exchange or
transfer and (iv) deliver to the Registrar instructions received by it from
the relevant Depositary that contain information regarding the Person in
whose name Definitive Registered Notes shall be registered to effect such
transfer or exchange.
The Company shall issue and the Trustee shall authenticate, one or
more Definitive Registered Notes in an aggregate principal amount equal to
the aggregate principal amount of Book-Entry Interests so transferred or
exchanged and in the names set forth in the instructions received by the
Registrar.
(d) Transfer and Exchange of Definitive Registered Notes for Book-
-------------------------------------------------------------
Entry Interests. In connection with any transfer or exchange of Definitive
---------------
Registered Notes for Book-Entry Interests, the Holder of such Notes shall
surrender to the Registrar such Definitive Registered Notes duly endorsed or
accompanied by a written instruction of transfer in form satisfactory to the
Registrar duly executed by such Holder or by its attorney, duly authorized in
writing. In addition, the Holder of such Definitive Registered Notes must
deliver written and/or electronic orders directing the Depositary to credit the
account of the transferee Participant in an amount equal to the Book-Entry
Interest to be created and identifying the Participant account to be credited.
-43-
(i) Restricted Definitive Registered Notes to Book-Entry Interests in
-----------------------------------------------------------------
Restricted Global Notes. A Holder of Restricted Definitive Registered Notes
-----------------------
may exchange such Notes for a Book-Entry Interest in a Restricted Global
Note or transfer such Restricted Definitive Registered Notes to a Person
who takes delivery thereof in the form of a Book-Entry Interest in a
Restricted Global Note, if the exchange or transfer complies with the first
paragraph of this Section 2.07(d) and:
(A) if the Holder of such Restricted Definitive Registered Note
proposes to exchange such Note for a Book-Entry Interest in a
Restricted Global Note, a certificate from such Holder in the form of
Exhibit C hereto, including the certifications in item (1)(b) thereof;
---------
(B) if such Restricted Definitive Registered Note is being
transferred to a QIB in accordance with Rule 144A under the Securities
Act, a certificate to the effect set forth in Exhibit B hereto,
---------
including the certifications in item (1) thereof;
(C) if such Restricted Definitive Registered Note is being
transferred in an offshore transaction in accordance with Rule 903 or
Rule 904 under the Securities Act, a certificate to the effect set
forth in Exhibit B hereto, including the certifications in item (2)
---------
thereof;
(D) if such Restricted Definitive Registered Note is being
transferred pursuant to an exemption from the registration
requirements of the Securities Act in accordance with Rule 144 under
the Securities Act, a certificate to the effect set forth in Exhibit B
---------
hereto, including the certifications in item (3)(a) thereof;
(E) if such Restricted Definitive Registered Note is being
transferred to the Company or any of its Subsidiaries, a certificate
to the effect set forth in Exhibit B hereto, including the
---------
certifications in item (3)(b) thereof;
(F) if such Restricted Definitive Registered Note is being
transferred in reliance on an exemption from the registration
requirements of the Securities Act other than those listed in
subparagraphs (B) through (E) above, a certificate to the effect set
forth in Exhibit B hereto, including the certifications, certificates
---------
and Opinion of Counsel required by item (3)(c) thereof, if applicable.
Upon satisfaction of all the requirements set forth in this Section
2.07(d)(i), the Registrar shall (i) deliver the Definitive Registered Notes
surrendered for exchange or transfer to the Trustee for cancellation
pursuant to Section 2.11 hereof, (ii) record such transfer or exchange on
the Register, (iii) instruct the Common Depositary to deliver
-44-
to it (x) in the case of clause (C) above, the International Global Note
and (y) in all other cases, the U.S. Global Note, (iv) endorse Schedule A
to such Global Note to reflect the increase in principal amount resulting
from such transfer or exchange, and (v) thereafter, return the Global
Note(s) to the Common Depositary, together with all information regarding
the Participant accounts to be credited in connection with such exchange or
transfer.
(ii) Restricted Definitive Registered Notes to Book-Entry Interests in
-----------------------------------------------------------------
Unrestricted Global Notes. A Holder of a Restricted Definitive Registered
-------------------------
Note may exchange such Note for a Book-Entry Interest in an Unrestricted
Global Note or transfer such Restricted Definitive Registered Note to a
Person who takes delivery thereof in the form of a Book-Entry Interest in
an Unrestricted Global Note if the exchange or transfer complies with the
first paragraph of this Section 2.07(d) and:
(A) such exchange or transfer is effected pursuant to the
Exchange Offer in accordance with the Registration Rights Agreement
and the Holder, in the case of an exchange, or the transferee, in the
case of a transfer, certifies in the applicable Letter of Transmittal
that it is not (1) a Broker-Dealer that acquired the Book-Entry
Interests tendered in the Exchange Offer directly from the Company or
an Affiliate of the Company, (2) a Person participating in the
distribution of the Exchange Notes or (3) a Person who is an affiliate
(as defined in Rule 144) of the Company;
(B) such transfer is effected pursuant to the Shelf Registration
Statement in accordance with the Registration Rights Agreement or
pursuant to another effective registration statement under the
Securities Act and in compliance with the prospectus delivery
requirements of the Securities Act and the transferor delivers a
certificate in the form of Exhibit B hereto including the
---------
certifications contained in item (4) thereof; or
(C) such transfer is effected by a Broker-Dealer pursuant to the
Exchange Offer Registration Statement in accordance with the
Registration Rights Agreement.
Upon satisfaction of all the requirements set forth in this Section
2.07(d)(ii), the Registrar shall (i) deliver the Definitive Registered
Notes surrendered for exchange or transfer to the Trustee for cancellation
pursuant to Section 2.11 hereof, (ii) record such transfer or exchange on
the Register, (iii) instruct the Common Depositary to deliver the relevant
Global Note(s), (iv) endorse Schedule A to such Global Note to reflect the
increase in principal amount resulting from such transfer or exchange, and
(v) thereafter, return the Global Notes to the Common Depositary, together
with all information regarding the Participant accounts to be credited in
connection with such exchange or transfer.
-45-
If any such transfer is effected pursuant to this Section
2.07(d)(ii) at a time when an Unrestricted Global Note has not yet
been issued, the Registrar shall so inform the Trustee and the Company
and, thereafter, the Company shall issue and, upon receipt of a
Company Order from the Company in accordance with Section 2.03 hereof,
the Trustee shall authenticate one or more Unrestricted Global Notes
in an aggregate principal amount equal to the aggregate principal
amount of Book-Entry Interests to be transferred or exchanged.
(iii) Unrestricted Definitive Registered Notes to Book-Entry
------------------------------------------------------
Interests in Unrestricted Global Notes. A Holder of an Unrestricted
--------------------------------------
Definitive Registered Note may exchange such Note for a Book-Entry
Interest in an Unrestricted Global Note or transfer such Definitive
Registered Note to a Person who takes delivery thereof in the form of
a Book-Entry Interest in an Unrestricted Global Note if the exchange
or transfer complies with the first paragraph of this Section 2.07(d).
Upon satisfaction of all the requirements set forth in this Section
2.07(d)(iii), the Registrar shall (i) deliver the Definitive
Registered Note surrendered for exchange or transfer to the Trustee
for cancellation pursuant to Section 2.11 hereof, (ii) record such
transfer or exchange on the Register, (iii) instruct the Common
Depositary to deliver the relevant Global Note(s), (iv) endorse
Schedule A to such Global Note to reflect the increase in principal
amount resulting from such transfer or exchange, and (v) thereafter,
return the Global Notes to the Common Depositary, together with all
information regarding the Participant accounts to be credited in
connection with such exchange or transfer.
If any such transfer is effected pursuant to this Section
2.07(d)(iii) at a time when an Unrestricted Global Note has not yet
been issued, the Registrar shall so inform the Trustee and the Company
and, thereafter, the Company shall issue and, upon receipt of a
Company Order from the Company in accordance with Section 2.03 hereof,
the Trustee shall authenticate one or more Unrestricted Global Notes
in an aggregate principal amount equal to the aggregate principal
amount of Book-Entry Interests to be transferred or exchanged.
(e) Transfer and Exchange of Definitive Registered Notes for
-------------------------------------------------------
Definitive Registered Notes. In connection with any transfer or exchange of
---------------------------
Definitive Registered Notes for Definitive Registered Notes, the Holder of such
Notes shall surrender to the Registrar the Definitive Registered Notes for
transfer or exchange duly endorsed or accompanied by a written instruction of
transfer in form satisfactory to the Registrar duly executed by such Holder or
by its attorney, duly authorized in writing. In addition, the requesting Holder
shall provide any additional certifications, documents and information, as
applicable, required pursuant to the following provisions of this Section
2.07(e). Upon request by a Holder of Definitive Registered Notes and such
Holder's compliance with the provisions of this Section 2.07(e), the Registrar
shall register the transfer or exchange of Definitive Registered Notes.
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(i) Restricted Definitive Registered Notes to Restricted Definitive
---------------------------------------------------------------
Registered Notes. Any Restricted Definitive Registered Note may be
----------------
transferred to and registered in the name of Persons who take delivery
thereof in the form of a Restricted Definitive Registered Note if the
exchange or transfer complies with the first paragraph of this Section
2.07(e) and the Registrar receives the following:
(A) if the transfer will be made pursuant to Rule 144A under the
Securities Act, then the transferor must deliver a certificate in the
form of Exhibit B hereto, including the certifications in item (1)
---------
thereof;
(B) if the transfer will be made pursuant to Rule 903 or Rule
904, then the transferor must deliver a certificate in the form of
Exhibit B hereto, including the certifications in item (2) thereof;
---------
and
(C) if the transfer will be made pursuant to any other exemption
from the registration requirements of the Securities Act, then the
transferor must deliver a certificate in the form of Exhibit B hereto,
---------
including the certifications, certificates and Opinion of Counsel
required by item (3) thereof, if applicable.
(ii) Restricted Definitive Registered Notes to Unrestricted Definitive
-----------------------------------------------------------------
Registered Notes. Any Restricted Definitive Registered Note may be
----------------
exchanged by the Holder thereof for an Unrestricted Definitive Registered
Note or transferred to a Person or Persons who take delivery thereof in the
form of an Unrestricted Definitive Registered Note if:
(A) such exchange or transfer is effected pursuant to the
Exchange Offer in accordance with the Registration Rights Agreement
and the Holder, in the case of an exchange, or the transferee, in the
case of a transfer, certifies in the applicable Letter of Transmittal
that it is not (1) a Broker-Dealer that acquired the Book-Entry
Interests tendered in the Exchange Offer directly from the Company or
an Affiliate of the Company, (2) a Person participating in the
distribution of the Exchange Notes or (3) a Person who is an affiliate
(as defined in Rule 144) of the Company;
(B) any such transfer is effected pursuant to the Shelf
Registration Statement in accordance with the Registration Rights
Agreement or pursuant to another effective registration statement
under the Securities Act and in compliance with the prospectus
delivery requirements of the Securities Act and the transferor
delivers a certificate in the form of Exhibit B hereto including the
---------
certifications contained in item (4) thereof; or
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(C) any such transfer is effected by a Broker-Dealer pursuant
to the Exchange Offer Registration Statement in accordance with the
Registration Rights Agreement.
(iii) Unrestricted Definitive Registered Notes to Unrestricted
--------------------------------------------------------
Definitive Registered Notes. A Holder of Unrestricted Definitive
---------------------------
Registered Notes may transfer such Notes to a Person who takes delivery
thereof in the form of an Unrestricted Definitive Registered Note. Upon
compliance with the first paragraph of this Section 2.07(e) and receipt
of a request to register such a transfer, the Registrar shall register
the Unrestricted Definitive Registered Notes pursuant to the instructions
from the Holder thereof.
(f) Exchange Offer. Upon the occurrence of the Exchange Offer in
--------------
accordance with the Registration Rights Agreement, the Company shall issue and,
upon receipt of a Company Order in accordance with Section 2.03, the Trustee
shall authenticate (i) one or more Unrestricted Global Notes in an aggregate
principal amount equal to the corresponding principal amount of the Book-Entry
Interests in the Restricted Global Notes tendered for acceptance by Persons that
certify in the applicable Letters of Transmittal that (x) they are not Broker-
Dealers that acquired the Book-Entry Interests tendered in the Exchange Offer
directly from the Company or an Affiliate of the Company, (y) they are not
participating in a distribution of the Exchange Notes and (z) they are not
affiliates (as defined in Rule 144) of the Company and (ii) Unrestricted
Definitive Registered Notes in an aggregate principal amount equal to the
corresponding principal amount of the Restricted Definitive Registered Notes
tendered for exchange by Persons who certify to the effect set forth in (i) of
this subsection (f) and accepted for exchange in the Exchange Offer.
In addition, the Trustee shall (i) endorse Schedule A to the
Unrestricted Global Notes issued pursuant to the preceding paragraph to reflect
the principal amount of Restricted Global Notes tendered in the Exchange Offer,
(ii) deliver such Unrestricted Global Notes to the Common Depositary, (iii)
instruct the Common Depositary to deliver the relevant Restricted Global Note(s)
to the Trustee, (iv) endorse Schedule A to such Restricted Global Note(s) to
reflect the decrease in principal amount resulting from the Exchange Offer, and
(v) thereafter return the Restricted Global Notes to the Common Depositary,
together with all information regarding the Participant accounts to be debited
and credited in connection with the Exchange Offer.
(g) General Provisions Relating to All Transfers and Exchanges.
----------------------------------------------------------
(i) To permit registrations of transfers and exchanges, the Company
shall execute and the Trustee shall authenticate Global Notes or Definitive
Registered Notes, as the case may be, in each case, in accordance with
Section 2.03 hereof.
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(ii) No service charge shall be made to a Holder for any
registration of transfer or exchange, but the Company may require payment
of a sum sufficient to cover any stamp or transfer tax, duty or
governmental charge payable in connection therewith (other than any such
stamp or transfer taxes, duties or similar governmental charge payable upon
exchange or transfer pursuant to Sections 2.10, 3.08, 4.11, 4.12 and 9.04
hereof).
(iii) All Global Notes and Definitive Registered Notes issued upon
any registration of transfer or exchange of Global Notes or Definitive
Registered Notes shall be the valid obligations of the Company, evidencing
the same debt, and entitled to the same benefits under this Indenture, as
the Global Notes or Definitive Registered Notes surrendered upon such
registration of transfer or exchange.
(iv) The Company shall not be required (A) to register the transfer
of or to exchange Notes during a period beginning at the opening of
business 15 days before any redemption date under Section 3.08 and ending
at the close of business on the redemption date, (B) to register the
transfer of or to exchange any Note during a period beginning at the
opening of business 15 days before any mailing of a notice of redemption of
Notes for partial redemption under Section 3.08 and ending on the day of
such selection, (C) to register the transfer of or to exchange a Note
during a period beginning at the opening of business on a record date for
the payment of interest and the applicable succeeding Interest Payment
Date, or (D) to register the transfer of or to exchange a Note that has
been tendered in an Asset Sale Offer or a Change of Control Offer.
(v) Prior to due presentment for the registration of a transfer of
any Note, the Trustee, the Paying Agents, the Registrar, any Agent and the
Company may deem and treat the Person in whose name any Note is registered
as the absolute owner of such Note for the purpose of receiving payment of
principal of and interest on such Notes and for all other purposes, and
none of the Trustee, the Paying Agents, the Registrar, any Agent or the
Company shall be affected by notice to the contrary.
SECTION 2.08. Replacement Notes. If a mutilated Note is surrendered to
-----------------
the Trustee or if the Holder claims that the Note has been lost, destroyed or
wrongfully taken, the Company shall issue and the Trustee shall authenticate a
replacement Note of like tenor and amount and bearing a number not
contemporaneously outstanding; provided that the requirements of this Section
2.08 are met. If required by the Trustee or the Company, an indemnity bond must
be furnished that is sufficient in the judgment of both the Trustee and the
Company to protect the Company, any Guarantor, the Trustee or any Agent from any
loss that any of them may suffer if a Note is replaced. The Company may charge
such Holder for its expenses and the expenses of the Trustee in replacing a
Note. In case any such mutilated, lost, destroyed or wrongfully taken Note has
become or is about to become due and payable, the
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Company in its discretion may pay such Note instead of issuing a new Note in
replacement thereof.
Every replacement Note is an additional obligation of the Company and
shall be entitled to the benefits of this Indenture.
SECTION 2.09. Outstanding Notes. Notes outstanding at any time are all
-----------------
Notes that have been authenticated by the Trustee except for those cancelled by
it, those delivered to it for cancellation and those described in this Section
2.09 as not outstanding.
If a Note is replaced pursuant to Section 2.08, it ceases to be
outstanding unless and until the Trustee and the Company receive proof
satisfactory to them that the replaced Note is held by a bona fide purchaser.
If the Paying Agent (other than the Company or an Affiliate of the
Company) holds on any redemption date, the maturity date or any date of
repurchase money sufficient to pay Notes payable on that date, then on and after
that date such Notes cease to be outstanding and interest on them shall cease to
accrue.
A Note does not cease to be outstanding because the Company or one of
its Affiliates holds such Note; provided, however, that, in determining whether
the Holders of the requisite principal amount of the outstanding Notes have
given any request, demand, authorization, direction, notice, consent or waiver
hereunder, Notes owned by the Company or any other obligor upon the Notes or any
Affiliate of the Company or of such other obligor shall be disregarded and
deemed not to be outstanding, except that, in determining whether the Trustee
shall be protected in relying upon any such request, demand, authorization,
direction, notice, consent or waiver, only Notes which a Responsible Officer of
the Trustee has actual knowledge or has received written notice to be so owned
shall be so disregarded. The Company shall notify the Trustee when it, any
obligor or any of their respective Affiliates acquires any Notes. Notes so owned
which have been pledged in good faith may be regarded as outstanding if the
pledgee establishes to the satisfaction of the Trustee the pledgee's right so to
act with respect to such Notes and that the pledgee is not the Company or any
other obligor upon the Notes or any Affiliate of the Company or of such other
obligor.
SECTION 2.10. Temporary Notes. Until definitive permanent Notes are
---------------
ready for delivery, the Company may prepare and the Trustee shall authenticate
temporary Notes. Temporary Notes shall be substantially in the form of
definitive permanent Notes but may have insertions, substitutions, omissions and
other variations determined to be appropriate by the officers executing the
temporary Notes, as evidenced by their execution of such temporary Notes. If
temporary Notes are issued, the Company shall cause definitive permanent notes
to be prepared without unreasonable delay. After the preparation of definitive
permanent Notes, the temporary Notes shall be exchangeable for definitive
permanent Notes upon surrender of the temporary Notes at the office or agency of
the Company designated for
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such purpose pursuant to Section 4.02, without charge to the Holder. Upon
surrender for cancellation of any one or more temporary Notes the Company shall
execute and the Trustee shall authenticate and make available for delivery in
exchange therefor a like principal amount of definitive permanent Notes of
authorized denominations. Until so exchanged, the temporary Notes shall be
entitled to the same benefits under this Indenture as definitive permanent
Notes.
SECTION 2.11. Cancellation. The Company at any time may deliver to the
------------
Trustee for cancellation any Notes previously authenticated and delivered
hereunder which the Company may have acquired in any manner whatsoever, and may
deliver to the Trustee for cancellation any Notes previously authenticated
hereunder which the Company has not issued and sold. The Registrar and the
Paying Agent shall forward to the Trustee any Notes surrendered to them for
transfer, exchange or payment. The Trustee shall cancel all Notes surrendered
for transfer, exchange, payment or cancellation in accordance with its normal
procedure.
At such time as all Book-Entry Interests therein have been exchanged
for Definitive Registered Notes, a Global Note shall be returned to or retained
and canceled by the Trustee in accordance with this Section 2.11.
SECTION 2.12. ISIN Numbers and Common Codes. The Company in issuing
-----------------------------
the Notes may use "ISIN" numbers or Common Codes (if then generally in use), and
the Trustee shall use the same in notices of redemption or exchange as a
convenience to Holders; provided that any such notice shall state that no
representation is made as to the correctness of such numbers either as printed
on the Notes or as contained in any notice of redemption or exchange and that
reliance may be placed only on the other identification numbers printed on the
Notes, and any such redemption shall not be affected by any defect or omission
of such numbers. The Company shall promptly notify the Trustee in writing of any
change in the "ISIN" numbers or Common Codes.
SECTION 2.13. Defaulted Interest. If the Company defaults on a payment
------------------
of interest on the Notes, it shall pay, or shall deposit with the Paying Agent
money in immediately available funds sufficient to pay the defaulted interest,
plus (to the extent lawful) any interest payable on the defaulted interest, to
the Persons who are Holders on a subsequent special record date. A special
record date, as used in this Section 2.13 with respect to the payment of any
defaulted interest, shall mean the 15th day next preceding the date fixed by the
Company for the payment of defaulted interest, whether or not such day is a
Business Day. At least 15 days before the subsequent special record date, the
Company shall mail to each Holder and to a Responsible Officer of the Trustee a
notice that states the subsequent special record date, the payment date and the
amount of defaulted interest to be paid.
SECTION 2.14. Issuance of Additional Notes. The Company shall be
----------------------------
entitled to issue Additional Notes under this Indenture which shall have
identical terms as the Notes
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issued on the Issue Date, other than with respect to the date of issuance, issue
price, and amount of interest payable on the first payment date applicable
thereto (and, if such Additional Notes shall be issued in the form of Exchange
Notes, other than with respect to transfer restrictions); provided that such
issuance is not prohibited by Section 4.03. The Initial Notes issued on the
Issue Date, any Additional Notes and all Exchange Notes issued in exchange
therefor shall be treated as a single class for all purposes under this
Indenture.
With respect to any Additional Notes, the Company shall set forth
in a resolution of its Board of Directors and in a Company Order, a copy of each
of which shall be delivered to the Trustee, the following information:
(1) the aggregate principal amount of such Additional Notes to
be authenticated and delivered pursuant to this Indenture;
(2) the issue price, the issue date and the ISIN number or
Common Code of such Additional Notes and the amount of interest
payable on the first payment date applicable thereto; provided,
however, that no Additional Notes may be issued at a price that would
cause such Additional Notes to have "original issue discount" within
the meaning of Section 1273 of the Internal Revenue Code of 1986, as
amended; and
(3) whether such Additional Notes shall be Notes bearing the
Private Placement Legend and issued in the form of Initial Notes or
shall be Unrestricted Notes issued in the form of Exchange Notes.
ARTICLE THREE
REDEMPTION
SECTION 3.01. Optional Redemption. (a) Except as set forth in
-------------------
Section 3.01(b), the Notes may not be redeemed prior to March 15, 2005. At any
time on or after March 15, 2005, the Company, at its option, may redeem the
Notes, in whole or in part, at the redemption prices (expressed as percentages
of principal amount) set forth below, together with accrued and unpaid interest
thereon and Liquidated Damages, if any, to the redemption date, if redeemed
during the 12-month period beginning March 15 of the years indicated.
Year Optional Redemption Price
---- -------------------------
2005............................ 105.50%
2006............................ 102.75%
2007 and thereafter............. 100%
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(b) At any time, or from time to time, on or prior to March 15,
2004 the Company may redeem up to 35% of the aggregate principal amount of the
Notes with the net cash proceeds of one or more Public Equity Offerings at a
redemption price equal to 111% of the principal amount of the Notes to be
redeemed, plus accrued and unpaid interest thereon, if any, to the date of
redemption; provided that (1) at least 65% of the aggregate principal amount of
Notes issued under this Indenture remains outstanding immediately after the
occurrence of such redemption and (2) the redemption occurs within 120 days of
the date of the closing of any such Public Equity Offering.
SECTION 3.02. Notices to Trustee. If the Company elects to redeem
------------------
Notes pursuant to Section 3.01(a) or Section 3.01(b), it shall notify the
Trustee in writing of the Redemption Date and the principal amount of Notes to
be redeemed.
The Company shall give each notice provided for in this Section
3.02 in an Officers' Certificate at least 60 days before the Redemption Date
(unless a shorter period shall be satisfactory to the Trustee).
SECTION 3.03. Selection of Notes to Be Redeemed. In the case of
---------------------------------
any partial redemption pursuant to Section 3.01(a) or Section 3.01(b), selection
of the Notes for redemption will be made by the Trustee in compliance with the
requirements of the Luxembourg Stock Exchange, if the Notes are so listed, and
any other principal securities exchange, if any, on which the Notes are listed
or, if the Notes are not listed on a principal securities exchange or the
Luxembourg Stock Exchange, pro rata, by lot or by such other method as the
Trustee shall deem fair and appropriate; provided that no Note of (euro)1,000 in
principal amount or less shall be redeemed in part; and provided, further, that
any redemption following a Public Equity Offering will be made on a pro rata or
on as nearly a pro rata basis as applicable (subject to the procedures of
Euroclear and Clearstream Banking). The Trustee shall make the selection from
the Notes outstanding and not previously called for redemption. Provisions of
this Indenture that apply to Notes called for redemption also apply to portions
of Notes called for redemption. The Trustee shall notify the Company and the
Registrar promptly in writing of the Notes or portions of Notes to be called for
redemption.
SECTION 3.04. Notice of Redemption. With respect to any
--------------------
redemption of Notes pursuant to Section 3.01(a) or Section 3.01(b), at least 30
days but not more than 60 days before a Redemption Date, the Company shall mail
a notice of redemption by first class mail to each Holder whose Notes are to be
redeemed at its registered address. For Notes which are represented by Global
Notes, notices may be given by delivery of the relevant notices to each of the
Depositaries for communication to its Participants. So long as any Notes are
listed on the Luxembourg Stock Exchange, any such notice to the Holders of the
relevant Notes shall also be published in a daily newspaper of general
circulation in Luxembourg (which is expected to be the Luxemburger Wort).
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The notice shall identify the Notes to be redeemed and shall
state:
(i) the Redemption Date;
(ii) the Redemption Price;
(iii) the name and address of each Paying Agent;
(iv) that Notes called for redemption must be surrendered to
the applicable Paying Agent in order to collect the Redemption Price;
(v) that, unless the Company defaults in making the
redemption payment, interest on Notes called for redemption ceases to
accrue on and after the Redemption Date and the only remaining right
of the Holders is to receive payment of the Redemption Price plus
accrued interest and Liquidated Damages, if any, to the Redemption
Date upon surrender of the Notes to the Paying Agent;
(vi) that, in the case of a redemption pursuant to Section
3.01(a) or Section 3.01(b) of Definitive Registered Notes, if any such
Note is being redeemed in part, the portion of the principal amount
(equal to (euro)1,000 in principal amount or any integral multiple
thereof) of such Note to be redeemed and that, on and after the
Redemption Date, upon surrender of such Note, a new Note or Notes in
principal amount equal to the unredeemed portion thereof with a
minimum denomination of (euro)1,000 will be issued, and that, in the
case of such a partial redemption of Global Notes, the Trustee shall
endorse Schedule A to each Global Note surrendered for redemption to
reflect the decrease in principal amount resulting from such
redemption;
(vii) that, if any such Notice contains an ISIN number or
Common Code as provided in Section 2.12, no representation is being
made as to the correctness of the ISIN number or Common Code either as
printed on the Notes or as contained in the notice of redemption and
that reliance may be placed only on the other identification numbers
printed on the Notes; and
(viii) if the redemption is conditioned upon any subsequent
event, a description of such condition or event.
At the Company's request (which request may be revoked by
the Company at any time prior to the time at which the Trustee shall have given
such notice to the Holders), made in writing to the Trustee at least 60 days (or
such shorter period as shall be satisfactory to the Trustee) before a Redemption
Date, the Trustee shall give the notice of redemption in the name and at the
expense of the Company. If, however, the Company gives such notice to the
Holders, the Company shall concurrently deliver to the Trustee an Officers'
Certificate stating that such notice has been given.
-54-
SECTION 3.05. Effect of Notice of Redemption. Once notice of
------------------------------
redemption is mailed, Notes called for redemption become due and payable on the
Redemption Date and at the Redemption Price, unless the redemption is
conditioned upon the occurrence of a subsequent event. Upon surrender of any
Notes to the Paying Agent, unless such redemption is conditioned upon the
occurrence of a subsequent event, such Notes shall be paid at the Redemption
Price, plus accrued interest and Liquidated Damages, if any, to the Redemption
Date.
Notice of redemption shall be deemed to be given when
mailed, whether or not the Holder receives the notice. In any event, failure to
give such notice, or any defect therein, shall not affect the validity of the
proceedings for the redemption of Notes held by Holders to whom such notice was
properly given.
SECTION 3.06. Deposit of Redemption Price. By 12:00 noon
---------------------------
(New York City time) one Business Day prior to any Redemption Date, the Company
shall deposit with the Paying Agent (or, if the Company is acting as its own
Paying Agent, shall segregate and hold in trust as provided in Section 2.06)
money sufficient to pay the Redemption Price of and accrued interest on all
Notes to be redeemed on that date other than Notes or portions thereof called
for redemption on that date that have been delivered by the Company to the
Trustee for cancellation.
SECTION 3.07. Payment of Notes Called for Redemption. If
--------------------------------------
notice of redemption has been given in the manner provided above, and unless
such redemption is conditioned upon a subsequent event, the Notes or portion of
Notes specified in such notice to be redeemed shall become due and payable on
the Redemption Date at the Redemption Price stated therein, together with
accrued interest and Liquidated Damages, if any, to such Redemption Date, and so
long as the Company has deposited with the Paying Agent funds in satisfaction of
the Redemption Price pursuant to the terms of this Indenture on and after such
date (unless the Company shall default in the payment of such Notes at the
Redemption Price and accrued interest and Liquidated Damages, if any, to the
Redemption Date, in which case the principal, until paid, shall bear interest
from the Redemption Date at the rate prescribed in the Notes), such Notes shall
cease to accrue interest. Upon surrender of any Note for redemption in
accordance with a notice of redemption, such Note shall be paid and redeemed by
the Company at the Redemption Price, together with accrued interest, if any, to
the Redemption Date; provided that installments of interest whose Stated
Maturity is on or prior to the Redemption Date shall be payable to the Holders
registered as such at the close of business on the relevant Regular Record Date.
SECTION 3.08. Notes Redeemed in Part. Upon surrender of any
----------------------
Note that is redeemed in part, the Company shall execute and the Trustee shall
authenticate and deliver to the Holder a new Note equal in principal amount to
the unredeemed portion of such surrendered Note, which shall not, in any event
be less than (euro)1,000 principal amount. In the case of
-55-
a partial redemption of Global Notes, the Trustee shall endorse Schedule A to
each Global Note surrendered for redemption to reflect the decrease in principal
amount resulting from such redemption.
ARTICLE FOUR
COVENANTS
SECTION 4.01. Payment of Notes. The Company shall pay the
----------------
principal of Liquidated Damages, if any, and interest on the Notes on the dates
and in the manner provided in the Notes and this Indenture. An installment of
principal, Liquidated Damages, if any, or interest shall be considered paid on
the date due if the Trustee or Paying Agent (other than the Company, a
Subsidiary of the Company, or any Affiliate of any of them) holds on that date
money designated for and sufficient to pay the installment. As provided in
Section 6.09, upon a bankruptcy or reorganization procedure relative to the
Company, the Trustee shall serve as the Paying Agent, if any, for the Notes.
The Company shall pay interest on overdue principal,
Liquidated Damages, if any, and interest on overdue installments of interest, to
the extent lawful, at the rate per annum then borne upon the Notes.
SECTION 4.02. Maintenance of Office or Agency. The Company
-------------------------------
shall maintain the offices and agencies specified in Section 2.04.
SECTION 4.03. Limitation on Additional Indebtedness. (a) The
-------------------------------------
Company shall not, and shall not permit any Restricted Subsidiary to, directly
or indirectly, incur any Indebtedness including Acquired Indebtedness; provided
that the Company or any Guarantor may incur additional Indebtedness if, after
giving effect thereto, the Consolidated Interest Coverage Ratio would be at
least 2.50 to 1.00 (the "Coverage Ratio Exception").
------------------------
(b) Notwithstanding the above, each of the following
be permitted (the "Permitted Indebtedness"):
----------------------
(i) Indebtedness of the Company and any Guarantor under
the Revolving Credit Facility in an aggregate amount at any time
outstanding not to exceed $50.0 million;
(ii) the Initial Notes issued on the Issue Date and the
Exchange Notes issued pursuant to the Registration Rights Agreement;
(iii) Indebtedness of Foreign Restricted Subsidiaries that
are not Guarantors in an aggregate amount outstanding not to exceed
the greater of (x) $16.0 million and
-56-
(y) the sum of (a) 75% of the net book value of the accounts
receivable of the Foreign Restricted Subsidiaries and (b) 50% of the
net book value of the inventory of the Foreign Restricted
Subsidiaries, calculated on a combined basis in accordance with GAAP;
(iv) Indebtedness of the Company and the Restricted
Subsidiaries to the extent outstanding on the Issue Date (other than
Indebtedness referred to in clauses (i), (ii) and (iii) above, and
after giving effect to the intended use of proceeds of the Notes);
(v) Indebtedness under Hedging Obligations; provided
that to the extent such Hedging Obligations are Interest Rate
Protection Obligations, they relate to payment obligations on
Indebtedness otherwise permitted to be incurred by this Section 4.03,
and the notional principal amount of such Interest Rate Protection
Obligations at the time incurred does not exceed the principal amount
of the Indebtedness to which such Interest Rate Protection Obligations
relate;
(vi) Indebtedness of the Company owed to a Restricted
Subsidiary and Indebtedness of any Restricted Subsidiary owed to the
Company or any other Restricted Subsidiary; provided, however, that
upon any such Restricted Subsidiary ceasing to be a Restricted
Subsidiary or such Indebtedness being owed to any Person other than
the Company or a Restricted Subsidiary, the Company or such Restricted
Subsidiary, as applicable, shall be deemed to have incurred
Indebtedness not permitted by this clause (vi);
(vii) Indebtedness in respect of bid, performance or
surety bonds issued for the account of the Company or any Restricted
Subsidiary in the ordinary course of business, including guarantees or
obligations of the Company or any Restricted Subsidiary with respect
to letters of credit supporting such bid, performance or surety
obligations (in each case other than for an obligation for money
borrowed);
(viii) Purchase Money Indebtedness incurred by the Company
or any Restricted Subsidiary, and Refinancing Indebtedness thereof, in
an aggregate amount not to exceed at any time outstanding the greater
of (x) $10.0 million and (y) 5% of Total Tangible Assets at that time;
(ix) Indebtedness arising from the honoring by a bank or
other financial institution of a check, draft or similar instrument
inadvertently (except in the case of daylight overdrafts) drawn
against insufficient funds in the ordinary course of business;
provided, however, that such Indebtedness is extinguished within five
business days of incurrence;
-57-
(x) Indebtedness arising in connection with endorsement
of instruments for deposit in the ordinary course of business;
(xi) Refinancing Indebtedness with respect to Indebtedness
incurred pursuant to the Coverage Ratio Exception or clause (ii) or
(iv) above and this clause (xi); and
(xii) Indebtedness of the Company or any Guarantor in an
aggregate amount not to exceed $25.0 million at any time outstanding.
(c) For purposes of determining compliance with this
Section 4.03, in the event that an item of Indebtedness meets the criteria of
more than one of the categories of Permitted Indebtedness described in clauses
(i) through (xii) under paragraph (b) above, the Company shall, in its sole
discretion, classify such item of Indebtedness and may divide and classify such
Indebtedness in more than one of the types of Indebtedness described, except
that Indebtedness, if any, incurred under the Revolving Credit Facility on the
Issue Date shall be deemed to have been incurred under clause (i) under
paragraph (b) above. In addition, with respect to any Indebtedness issued at a
discount from principal amount, the amount of such Indebtedness incurred upon
issuance will be deemed to be the accreted value thereof determined in
accordance with GAAP.
SECTION 4.04. Limitation on Layering Indebtedness. The
-----------------------------------
Company shall not, and shall not permit any Guarantor to, directly or
indirectly, incur any Indebtedness that purports to be by its terms (or by the
terms of any agreement governing such Indebtedness) subordinated to any other
Indebtedness of the Company or of such Guarantor, as the case may be, unless
such Indebtedness is also by its terms (or by the terms of any agreement
governing such Indebtedness) made expressly subordinate to the Notes or any
Guarantee of such Guarantor, to the same extent and in the same manner as such
Indebtedness is subordinated to such other Indebtedness of the Company or such
Guarantor, as the case may be.
SECTION 4.05. Limitation on Restricted Payments. (a) The
---------------------------------
Company shall not, and shall not permit any Restricted Subsidiary to, directly
or indirectly, make any Restricted Payment if at the time of such Restricted
Payment:
(i) a Default shall have occurred and be continuing or
shall occur as a consequence thereof;
(ii) the Company cannot incur $1.00 of additional
Indebtedness pursuant to the Coverage Ratio Exception; or
(iii) the amount of such Restricted Payment, when added to
the aggregate amount of all other Restricted Payments made after the
Issue Date (other than Re-
-58-
stricted Payments made pursuant to clause (ii), (iii) or (iv) of
Section 4.05(b)), exceeds the sum (the "Restricted Payments Basket")
--------------------------
of (without duplication):
(A) 50% of Consolidated Net Income for the period (taken as
one accounting period) commencing on the first day of the first
full fiscal quarter commencing after the Issue Date to and
including the last day of the fiscal quarter ended immediately
prior to the date of such calculation for which consolidated
financial statements are available (or, if such Consolidated Net
Income shall be a deficit, minus 100% of such aggregate deficit),
plus
(B) 100% of the aggregate net cash proceeds received by the
Company either (x) as contributions to the common equity of the
Company after the Issue Date or (y) from the issuance and sale of
Qualified Capital Stock after the Issue Date other than any such
proceeds which are used to redeem Notes in accordance with
Section 3.01(b) above, plus
(C) the aggregate amount by which Indebtedness (other than
any Subordinated Indebtedness) of the Company or any Restricted
Subsidiary is reduced on the Company's balance sheet upon the
conversion or exchange (other than by a Subsidiary of the
Company) subsequent to the Issue Date into Qualified Capital
Stock (less the amount of any cash, or the fair value of assets,
distributed by the Company or any Restricted Subsidiary upon such
conversion or exchange), plus
(D) in the case of the disposition or repayment of or
return on any Investment that was treated as a Restricted Payment
made after the Issue Date, an amount (to the extent not included
in the computation of Consolidated Net Income) equal to the
lesser of (x) the return of capital with respect to such
Investment and (y) the amount of such Investment that was treated
as a Restricted Payment, in either case, less the cost of the
disposition of such Investment and net of taxes, plus
(E) upon a Redesignation of an Unrestricted Subsidiary as a
Restricted Subsidiary, the lesser of (x) the Fair Market Value of
the Company's proportionate interest in such Subsidiary
immediately following such Redesignation, and (y) the aggregate
amount of the Company's Investments in such Subsidiary to the
extent such Investments reduced the amount available for
subsequent Restricted Payments under this clause (iii) and were
not previously repaid or otherwise reduced.
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(b) The foregoing provisions shall not prohibit:
(i) the payment by the Company or any Restricted Subsidiary of
any dividend within 60 days after the date of declaration thereof, if
on the date of declaration the payment would have complied with the
provisions of this Indenture;
(ii) the redemption of any Capital Stock of the Company or any
Restricted Subsidiary in exchange for, or out of the proceeds of the
substantially concurrent issuance and sale of, Qualified Capital
Stock;
(iii) the redemption of Subordinated Indebtedness of the Company
or any Guarantor (a) in exchange for, or out of the proceeds of the
substantially concurrent issuance and sale of, Qualified Capital Stock
or (b) in exchange for, or out of the proceeds of the substantially
concurrent incurrence of, Refinancing Indebtedness permitted to be
incurred under Section 4.03 and the other terms of this Indenture;
(iv) the redemption of any Disqualified Capital Stock of any
Person in exchange for, or out of the net proceeds of the
substantially concurrent issuance or sale (other than to a Subsidiary
of the Company) of, Disqualified Capital Stock of such Person;
provided that any Disqualified Capital Stock so issued has a stated
liquidation, redemption or similar value no greater than the
Disqualified Capital Stock being redeemed and matures, is mandatorily
redeemable and/or is redeemable at the sole option of the holder
thereof on a date later than the date of the Disqualified Capital
Stock being redeemed; or
(v) other Restricted Payments in an aggregate amount not to
exceed $5.0 million;
provided that (a) in the case of any Restricted Payment pursuant to clause (ii),
(iii), (iv) or (v) of paragraph (b) above, no Default shall have occurred and be
continuing or occur as a consequence thereof and (b) no issuance and sale of
Qualified Capital Stock pursuant to clause (ii), (iii) or (iv) of paragraph (b)
above shall increase the Restricted Payments Basket.
SECTION 4.06. Limitation on Dividend and Other Payment
----------------------------------------
Restrictions Affecting Restricted Subsidiaries. The Company shall not, and shall
----------------------------------------------
not permit any Restricted Subsidiary to, directly or indirectly, create or
otherwise cause or permit to exist or become effective any consensual
encumbrance or consensual restriction on the ability of any Restricted
Subsidiary to (a) pay dividends or make any other distributions on or in respect
of its Capital Stock; (b) make loans or advances or pay any Indebtedness or
other obligation owed to the Company or any other Restricted Subsidiary; or (c)
transfer any of its assets to the Company or any other Restricted Subsidiary;
except for:
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(i) encumbrances or restrictions existing under or by reason of
applicable law;
(ii) encumbrances or restrictions existing under this Indenture,
the Notes and any Guarantees;
(iii) non-assignment provisions of any contract or any lease entered
into in the ordinary course of business;
(iv) encumbrances or restrictions existing under agreements
existing on the date of this Indenture as in effect on that date;
(v) restrictions on the transfer of assets subject to any Lien
permitted under this Indenture imposed by the holder of such Lien;
(vi) restrictions on the transfer of assets imposed under any
agreement to sell such assets permitted under this Indenture to any Person
pending the closing of such sale;
(vii) any instrument governing Acquired Indebtedness, which
encumbrance or restriction is not applicable to any Person, or the
properties or assets of any Person, other than the Person or the properties
or assets of the Person so acquired;
(viii) any other agreement governing Indebtedness entered into after
the Issue Date that contains encumbrances and restrictions that are not
materially more restrictive with respect to any Restricted Subsidiary than
those in effect on the Issue Date with respect to that Restricted
Subsidiary pursuant to agreements in effect on the Issue Date;
(ix) customary provisions in partnership agreements, limited
liability company organizational governance documents, joint venture
agreements and other similar agreements entered into in the ordinary course
of business that restrict the transfer of ownership interests in such
partnership, limited liability company, joint venture or similar Person;
(x) restrictions contained in instruments governing Purchase Money
Indebtedness and Capitalized Leases incurred in compliance with Section
4.03 hereof that impose restrictions of the nature described in clause
(iii) above on the assets acquired;
(xi) restrictions applicable only to Foreign Restricted
Subsidiaries that are not Guarantors or the property or assets of such
Foreign Restricted Subsidiaries; and
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(xii) any encumbrances or restrictions imposed by any amendments or
refinancings of the contracts, instruments or obligations referred to in
clauses (i) through (x) above; provided that such amendments or
refinancings are, in the good faith judgment of the Company's Board of
Directors, no more materially restrictive with respect to such encumbrances
and restrictions than those prior to such amendment or refinancing; and
(xiii) encumbrances and restrictions under the Revolving Credit
Facility.
SECTION 4.07. Limitation on the Issuance or Sale of Capital
---------------------------------------------
Stock of Restricted Subsidiaries. The Company shall not, and shall not permit
--------------------------------
any Restricted Subsidiary to, directly or indirectly, sell or issue any shares
of Capital Stock of any Restricted Subsidiary except (a) to the Company, a
Restricted Subsidiary or the minority stockholders of any Restricted Subsidiary,
on a pro rata basis, at Fair Market Value, or (b) to the extent such shares
represent directors' qualifying shares or shares required by applicable law to
be held by a Person other than the Company or a Wholly-Owned Restricted
Subsidiary.
SECTION 4.08. Limitation on Sale and Leaseback Transactions. The
---------------------------------------------
Company shall not, and shall not permit any Restricted Subsidiary to, directly
or indirectly, enter into any Sale and Leaseback Transaction; provided that the
Company or any Restricted Subsidiary may enter into a Sale and Leaseback
Transaction if:
(i) the Company or such Restricted Subsidiary could have (A)
incurred the Indebtedness attributable to such Sale and Leaseback
Transaction pursuant to Section 4.03 hereof and (B) incurred a Lien to
secure such Indebtedness pursuant to Section 4.10 hereof;
(ii) the gross cash proceeds of such Sale and Leaseback Transaction
are at least equal to the Fair Market Value of the asset that is the
subject of such Sale and Leaseback Transaction; and
(iii) the transfer of assets in such Sale and Leaseback Transaction
is permitted by, and the Company or the applicable Restricted Subsidiary
applies the proceeds of such transaction in accordance with Section 4.11
hereof.
SECTION 4.09. Limitation on Transactions with Affiliates. (a) The
------------------------------------------
Company shall not, and shall not permit any Restricted Subsidiary to, directly
or indirectly, in one transaction or a series of related transactions, sell,
lease, transfer or otherwise dispose of any of its assets to, or purchase any
assets from, or enter into any contract, agreement, understanding, loan, advance
or guarantee with, or for the benefit of, any Affiliate (an "Affiliate
---------
Transaction"), unless:
-----------
-62-
(i) such Affiliate Transaction is on terms that are no less
favorable to the Company or the relevant Restricted Subsidiary than those
that would have been obtained in a comparable transaction at such time on
an arm's-length basis by the Company or that Restricted Subsidiary from a
Person that is not an Affiliate of the Company or that Restricted
Subsidiary; and
(ii) the Company delivers to the Trustee:
(A) with respect to any Affiliate Transaction involving
aggregate value in excess of $1.0 million, an Officers' Certificate
certifying that such Affiliate Transaction complies with clause (i)
above and a Secretary's Certificate which sets forth and authenticates
a resolution that has been adopted by the Independent Directors
approving such Affiliate Transaction; and
(B) with respect to any Affiliate Transaction involving
aggregate value of $5.0 million or more, the certificates described in
the preceding clause (A) and a written opinion as to the fairness of
such Affiliate Transaction to the Company or such Restricted
Subsidiary from a financial point of view issued by an Independent
Financial Advisor.
(b) The foregoing restrictions shall not apply to:
(i) transactions exclusively between or among (A) the Company and
one or more Restricted Subsidiaries or (B) Restricted Subsidiaries;
provided, in each case, that no Affiliate of the Company (other than
another Restricted Subsidiary) owns Capital Stock of any such Restricted
Subsidiary;
(ii) reasonable director, officer and employee compensation
(including bonuses) and other benefits (including retirement, health, stock
option and other benefit plans) and indemnification arrangements, in each
case approved by the Independent Directors;
(iii) the entering into of a tax sharing agreement, or payments
pursuant thereto, between the Company and/or one or more Subsidiaries, on
the one hand, and any other Person with which the Company or such
Subsidiaries are required or permitted to file a consolidated tax return or
with which the Company or such Subsidiaries are part of a consolidated
group for tax purposes, on the other hand, which payments by the Company
and the Restricted Subsidiaries are not in excess of the tax liabilities
that would have been payable by them on a stand-alone basis;
(iv) loans and advances permitted by clause (3) of the definition of
"Permitted Investments"; and
-63-
(v) Restricted Payments of the type described in clause (1), (2) or
(4) of the definition of "Restricted Payment" and which are made in
accordance with Section 4.05.
SECTION 4.10. Limitation on Liens. (a) The Company shall not, and
-------------------
shall not permit any Guarantor to, directly or indirectly, create, incur, assume
or permit or suffer to exist any Lien of any nature whatsoever against any
assets of the Company or any Guarantor (including Capital Stock of a Restricted
Subsidiary), whether owned at the Issue Date or thereafter acquired, or any
proceeds therefrom, or assign or otherwise convey any right to receive income or
profits therefrom, unless contemporaneously therewith:
(i) in the case of any Lien securing an obligation that ranks pari
passu with the Notes or a Guarantee, effective provision is made to secure
the Notes or such Guarantee, as the case may be, at least equally and
ratably with or prior to such obligation with a Lien on the same
collateral; and
(ii) in the case of any Lien securing an obligation that is
subordinated in right of payment to the Notes or a Guarantee, effective
provision is made to secure the Notes or such Guarantee, as the case may be,
with a Lien on the same collateral that is prior to the Lien securing such
subordinated obligation,
in each case, for so long as such obligation is secured by such Lien.
(b) The foregoing restrictions shall not apply to:
(i) Liens existing on the Issue Date (after giving effect to the
sale of the Notes and the application of the net proceeds thereof) securing
Indebtedness outstanding on the Issue Date;
(ii) Liens on accounts receivable, inventory, Capital Stock of
Subsidiaries, cash and Cash Equivalents of the Company or a Guarantor
securing obligations under the Revolving Credit Facility;
(iii) Liens in favor of the Company or a Guarantor;
(iv) Liens securing the Notes or a Guarantee;
(v) Liens to secure Purchase Money Indebtedness;
(vi) Liens securing Acquired Indebtedness permitted to be incurred
under this Indenture; provided that the Liens do not extend to assets not
subject to such Lien at the time of acquisition (other than improvements
thereon) and are no more favorable to the lienholders than those securing
such Acquired Indebtedness prior to the incurrence of such Acquired
Indebtedness by the Company or a Guarantor;
-64-
(vii) Liens on assets of a Person existing at the time such Person
is acquired or merged with or into or consolidated with the Company or any
such Guarantor (and not created in anticipation or contemplation thereof);
(viii) Liens to secure Refinancing Indebtedness of Indebtedness
secured by Liens referred to in the foregoing clauses (b)(i), (iv), (v),
(vi) and (vii); provided that in each case such Liens do not extend to any
additional assets (other than improvements thereon and replacements
thereof);
(ix) Liens to secure Attributable Indebtedness and/or that are
permitted to be incurred pursuant to Section 4.08 hereof; provided that any
such Liens do not extend to or cover any assets of the Company or any
Guarantor other than the assets which are the subject of the Sale and
Leaseback Transaction in which the Attributable Indebtedness is incurred;
(x) Liens incurred in the ordinary course of business of the
Company or any Guarantor with respect to obligations (other than
Indebtedness) that do not in the aggregate exceed $25.0 million at any one
time outstanding; and
(xi) Permitted Liens.
SECTION 4.11. Limitation on Asset Sales. (a) The Company shall not,
-------------------------
and shall not permit any Restricted Subsidiary to, directly or indirectly,
consummate any Asset Sale unless:
(i) the Company or such Restricted Subsidiary receives
consideration at the time of such Asset Sale at least equal to the Fair
Market Value of the assets included in such Asset Sale; and
(ii) at least 80% of the total consideration received in such Asset
Sale or series of related Asset Sales consists of cash or Cash Equivalents.
For purposes of clause (ii), the following shall be deemed to be cash:
(A) the amount (without duplication) of any Indebtedness
(other than Subordinated Indebtedness) of the Company or such
Restricted Subsidiary that is expressly assumed by the transferee in
such Asset Sale and with respect to which the Company or such
Restricted Subsidiary, as the case may be, is unconditionally released
by the holder of such Indebtedness, and
(B) the amount of any obligations received from such
transferee that are within 30 days converted by the Company or such
Restricted Subsidiary to cash (to the extent of the cash actually so
received).
-65-
If at any time any non-cash consideration received by the Company or
any Restricted Subsidiary of the Company, as the case may be, in connection with
any Asset Sale is repaid or converted into or sold or otherwise disposed of for
cash (other than interest received with respect to any such non-cash
consideration), then the date of such repayment, conversion or disposition shall
be deemed to constitute the date of an Asset Sale hereunder and the Net
Available Proceeds thereof shall be applied in accordance with this Section
4.11.
(b) If the Company or any Restricted Subsidiary engages in an Asset
Sale, the Company or such Restricted Subsidiary shall, no later than 270 days
following the consummation thereof, apply all or any of the Net Available
Proceeds therefrom to:
(i) satisfy all mandatory repayment obligations under the Revolving
Credit Facility arising by reason of such Asset Sale;
(ii) repay any Indebtedness which was secured by the assets sold in
such Asset Sale;
(iii) in the case of a Foreign Restricted Subsidiary that is not a
Guarantor, repay any Indebtedness of such Foreign Restricted Subsidiary;
and/or
(iv) invest all or any part of the Net Available Proceeds in the
purchase of assets to be used by the Company or any Restricted Subsidiary
in the Eyeglass Lens Business; provided that to the extent the applicable
Net Available Proceeds relate to an Asset Sale involving assets of the
Company or a Guarantor, such Net Available Proceeds shall be invested in
assets of the Company or a Guarantor.
The amount of Net Available Proceeds not applied or invested as
provided in this 4.11(b) will constitute "Excess Proceeds."
---------------
(c) When the aggregate amount of Excess Proceeds equals or exceeds
$10.0 million, the Company shall be required to make an offer to purchase from
all Holders and, if applicable, redeem (or make an offer to redeem) any Pari
Passu Indebtedness of the Company or a Guarantor the provisions of which require
the Company or a Guarantor to redeem (or make an offer to redeem) such
Indebtedness with the proceeds from any Asset Sales, in an aggregate principal
amount of Notes and such Pari Passu Indebtedness equal to the amount of such
Excess Proceeds as follows:
(i) the Company shall (A) make an offer to purchase (a "Net
---
Proceeds Offer") to all Holders in accordance with the procedures set forth
--------------
in this Indenture, and (B) redeem (or make an offer to redeem) any such
other Pari Passu Indebtedness, pro rata in proportion to the respective
principal amounts of the Notes and such other Indebtedness required to be
redeemed, the maximum principal amount (expressed as a
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multiple of (euro)1,000) of Notes and Pari Passu Indebtedness that may be
redeemed out of the amount (the "Payment Amount") of such Excess Proceeds;
--------------
(ii) the offer price for the Notes will be payable in cash in an
amount equal to 100% of the principal amount of the Notes tendered pursuant
to a Net Proceeds Offer, plus accrued and unpaid interest thereon, if any,
to the date such Net Proceeds Offer is consummated (the "Offered Price"),
-------------
in accordance with the procedures set forth in this Indenture and the
redemption price for such Pari Passu Indebtedness (the "Pari Passu
----------
Indebtedness Price") shall be as set forth in the related documentation
------------------
governing such Indebtedness;
(iii) if the aggregate Offered Price of Notes validly tendered and
not withdrawn by Holders thereof exceeds the pro rata portion of the
Payment Amount available to repurchase the Notes (with any portion of the
Payment Amount not utilized to redeem Pari Passu Indebtedness because the
holder of such Indebtedness did not accept the redemption offer being
deemed not available to repurchase the Notes), Notes to be purchased will
be selected on a pro rata basis; and
(iv) upon completion of such Net Proceeds Offer in accordance with
the foregoing provisions, the amount of Excess Proceeds with respect to
which such Net Proceeds Offer was made shall be deemed to be zero.
To the extent that the sum of the aggregate Offered Price of Notes
tendered pursuant to a Net Proceeds Offer and the aggregate Pari Passu
Indebtedness Price paid to the holders of such Pari Passu Indebtedness is less
than the Payment Amount relating thereto (such shortfall constituting a "Net
---
Proceeds Deficiency"), the Company may use the Net Proceeds Deficiency, or a
-------------------
portion thereof, for general corporate purposes, subject to the provisions of
this Indenture.
(d) In the event of the transfer of substantially all (but not all)
of the assets of the Company and the Restricted Subsidiaries as an entirety to a
Person in a transaction covered by and effected in accordance with Section 5.01
hereof the successor corporation shall be deemed to have sold for cash at Fair
Market Value the assets of the Company and the Restricted Subsidiaries not so
transferred for purposes of this Section 4.11, and shall comply with the
provisions of this Section 4.11 with respect to such deemed sale as if it were
an Asset Sale (with such Fair Market Value being deemed to be Net Available
Proceeds for such purpose).
The Company shall comply with applicable tender offer rules, including
the requirements of Rule 14e-1 under the Exchange Act and any other applicable
laws and regulations in connection with the purchase of Notes pursuant to a Net
Proceeds Offer. To the extent that the provisions of any securities laws or
regulations conflict with Section 4.11 hereof provisions of this Indenture, the
Company shall comply with the applicable securities
-67-
laws and regulations and shall not be deemed to have breached its obligations
under this Section 4.11 by virtue of this compliance.
SECTION 4.12. Repurchase of Notes upon a Change of Control. (a) Upon
--------------------------------------------
the occurrence of any Change of Control, each Holder will have the right to
require that the Company purchase that Holder's Notes for a cash price (the
"Change of Control Purchase Price") equal to 101% of the principal amount of the
--------------------------------
Notes to be purchased, plus accrued and unpaid interest thereon and Liquidated
Damages, if any, to the date of purchase.
Within 30 days following any Change of Control, the Company shall
mail, or caused to be mailed, to the Holders a notice:
(i) describing the transaction or transactions that constitute the
Change of Control;
(ii) offering to purchase, pursuant to the procedures required by
this Indenture and described in the notice (a "Change of Control Offer"),
-----------------------
on a date specified in the notice (which shall be a business day not
earlier than 30 days nor later than 60 days from the date the notice is
mailed) and for the Change of Control Purchase Price, all Notes properly
tendered by such Holder pursuant to such Change of Control Offer; and
(iii) describing the procedures that Holders must follow to accept
the Change of Control Offer. The Company shall cause a copy of such notice
to be published in a daily newspaper with general circulation in Luxembourg
(which is expected to be the Luxemburger Wort). The Change of Control Offer
is required to remain open for at least 20 Business Days and until the
close of business on the Change of Control Payment Date. All Notes properly
tendered pursuant to such Change of Control Offer and not withdrawn
pursuant thereto will be purchased on the Change of Control Payment Date.
(b) On or prior to the Change of Control Payment Date, the Company
shall, to the extent lawful:
(I) accept for payment all Notes or portions thereof properly
tendered pursuant to the Change of Control Offer;
(II) deposit with the Paying Agent an amount equal to the Change of
Control Payment in respect of all Notes or portions thereof so tendered;
and
(III) deliver or cause to be delivered to the Trustee the Notes so
accepted together with an Officers' Certificate stating the aggregate
principal amount of Notes or portions thereof being purchased by the
Company.
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The Paying Agent shall promptly mail (i) in the case of Global
Notes, to each Participant who has so tendered and (ii) in the case of
Definitive Registered Notes to each Holder of Notes so tendered, in each case,
the Change of Control Payment for such Notes, and the Trustee shall promptly
authenticate and mail (or cause to be transferred by book entry) to each Holder
a new Note or Book-Entry Interest therein equal in principal amount to any
unpurchased portion of the Notes surrendered, if any; provided that each such
new Note shall be in a principal amount of (euro) 1,000 or an integral multiple
thereof.
In connection with any repurchase of Definitive Registered Notes
to be repurchased only in part, the Company shall issue new Definitive
Registered Notes equal in principal amount to the unpurchased portion of the
Definitive Registered Notes surrendered; provided, that each Definitive
Registered Note purchased and each Definitive Registered Note issued shall be in
a principal amount of (euro)1,000 or integral multiples thereof. In connection
with any repurchase of Global Notes pursuant to a Change of Control Offer, the
Trustee shall endorse Schedule A to each Global Note surrendered for repurchase
to reflect the decrease in principal amount of such Global Note resulting from
such Change of Control Offer.
The Company shall publicly announce the results of the Change of
Control Offer on or as soon as practicable after the Change of Control Payment
Date.
(c) The Company shall comply with any tender offer rules under
the Exchange Act which may then be applicable, including, but not limited to,
Rule 14e-1 thereunder, and any other applicable laws, rules and regulations, in
connection with any Change of Control Offer. To the extent that the provisions
of any United States federal or state securities laws and regulations conflict
with this Section 4.12, the Company shall comply with such applicable securities
laws and regulations and shall not be deemed to have breached its obligations
under this Section 4.12 by virtue thereof.
SECTION 4.13. Limitation on Designation of Unrestricted
-----------------------------------------
Subsidiaries. (a) The following Subsidiary shall be designated an Unrestricted
------------
Subsidiary as of the Issue Date: Sola Optical China Ltd.
(b) The Company may designate any other Subsidiary of the
Company as an "Unrestricted Subsidiary" under this Indenture (a "Designation")
-----------
only if:
(i) no Default shall have occurred and be continuing at the time
of or after giving effect to such Designation; and
(ii) the Company would be permitted to make, at the time of such
Designation, (x) a Permitted Investment or (y) an Investment pursuant
to Section 4.05(a) above, in either case, in an amount (the
"Designation Amount") equal to the Fair Market Value of the Company's
------------------
proportionate interest in such Subsidiary on such date.
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Neither the Company nor any Restricted Subsidiary shall at any
time (x) provide credit support for, subject any of its assets (other than the
Capital Stock of any Unrestricted Subsidiary) to the satisfaction of, or
guarantee, any Indebtedness of any Unrestricted Subsidiary (including any
undertaking, agreement or instrument evidencing such Indebtedness), (y) be
directly or indirectly liable for any Indebtedness of any Unrestricted
Subsidiary or (z) be directly or indirectly liable for any Indebtedness which
provides that the holder thereof may (upon notice, lapse of time or both)
declare a default thereon or cause the payment thereof to be accelerated or
payable prior to its final scheduled maturity upon the occurrence of a default
with respect to any Indebtedness of any Unrestricted Subsidiary, except, in any
case, for any guarantee given solely to support the pledge by the Company or any
Restricted Subsidiary of the Capital Stock of any Unrestricted Subsidiary, which
guarantee is not recourse to the Company or any Guarantor, and except to the
extent the amount thereof constitutes a Restricted Payment permitted pursuant to
Section 4.05 hereof. No holder of any Indebtedness of any Unrestricted
Subsidiary shall have a right to declare a default on such Indebtedness or cause
the payment thereof to be accelerated or payable prior to its stated maturity as
a result of a default on any Indebtedness of the Company or any Restricted
Subsidiary, except to the extent such Indebtedness is a guarantee by such
Unrestricted Subsidiary of Indebtedness of the Company or any Restricted
Subsidiary.
(c) The Company may redesignate an Unrestricted Subsidiary as a
Restricted Subsidiary (a "Redesignation") only if:
-------------
(i) no Default shall have occurred and be continuing at the time
of and after giving effect to such Redesignation; and
(ii) all Liens, Indebtedness and Investments of such Unrestricted
Subsidiary outstanding immediately following such Redesignation would,
if incurred or made at such time, have been permitted to be incurred or
made for all purposes of this Indenture.
All Designations and Redesignations must be evidenced by
resolutions of the Board of Directors of the Company, delivered to the Trustee
certifying compliance with the foregoing provisions.
Unrestricted Subsidiaries are generally not restricted by the
covenants of this Indenture. This Indenture generally places no restriction on
an Unrestricted Subsidiary's ability to, among other things, incur Indebtedness,
make Restricted Payments (including Investments), or merge, consolidate or sell
all or any portion of its assets.
SECTION 4.14. Designation of Guarantor. If, after the Issue Date,
------------------------
(i) the Company or any Restricted Subsidiary shall acquire or create another
Subsidiary (other than (x) a Subsidiary that has been Designated an Unrestricted
Subsidiary, (y) an Insignificant Domestic Restricted Subsidiary or (z) a Foreign
Restricted Subsidiary), (ii) any Unrestricted
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Subsidiary is Redesignated a Restricted Subsidiary (other than a Restricted
Subsidiary that is an Insignificant Domestic Restricted Subsidiary or a Foreign
Restricted Subsidiary) or (iii) any Restricted Subsidiary that was an
Insignificant Domestic Restricted Subsidiary fails to continue to qualify as an
Insignificant Domestic Restricted Subsidiary then, in each such case, the
Company shall cause such Restricted Subsidiary to: (1) execute and deliver to
the Trustee (x) a supplemental indenture in form and substance satisfactory to
the Trustee pursuant to which such Restricted Subsidiary shall unconditionally
guarantee all of the Company's obligations under the Notes and this Indenture (a
"Note Guarantee") and (y) a notation of guarantee in respect of its Guarantee;
--------------
and (2) deliver to the Trustee one or more Opinions of Counsel that such
supplemental indenture (x) has been duly authorized, executed and delivered by
such Restricted Subsidiary and (y) constitutes a valid and legally binding
obligation of such Restricted Subsidiary in accordance with its terms.
The Company may at its option cause any other Restricted
Subsidiary to become a Guarantor by complying with the provisions of clauses (1)
or (2) above.
SECTION 4.15. Existence. Subject to Article Five of this
---------
Indenture, the Company shall do or cause to be done all things necessary to
preserve and keep in full force and effect its existence and the existence of
each Restricted Subsidiary in accordance with the respective organizational
documents of the Company and each Restricted Subsidiary and the rights (whether
pursuant to charter, partnership certificate, agreement, statute or otherwise),
material licenses and franchises of the Company and each Restricted Subsidiary;
provided that the Company shall not be required to preserve any such right,
license or franchise, or the existence of any Restricted Subsidiary, if the
maintenance or preservation thereof is no longer desirable in the conduct of the
business of the Company and its Restricted Subsidiaries taken as a whole.
SECTION 4.16. Payment of Taxes and Other Claims. The Company
---------------------------------
shall pay or discharge and shall cause each of its Restricted Subsidiaries to
pay or discharge, or cause to be paid or discharged, before the same shall
become delinquent (i) all material taxes, assessments and governmental charges
levied or imposed upon (a) the Company or any such Restricted Subsidiary, (b)
the income or profits of any such Restricted Subsidiary which is a corporation
or (c) the property of the Company or any such Restricted Subsidiaries and (ii)
all material lawful claims for labor, materials and supplies that, if unpaid,
might by law become a Lien upon the property of the Company or any such
Restricted Subsidiary; provided that the Company shall not be required to pay or
discharge, or cause to be paid or discharged, any such tax, assessment, charge
or claim the amount, applicability or validity of which is being contested in
good faith by appropriate proceedings and for which adequate reserves have been
established in accordance with GAAP.
SECTION 4.17. Reports to Holders. Whether or not required by the
------------------
rules and regulations of the SEC, beginning with the annual report on Form 10-K
for the year ending
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March 31, 2001, and thereafter for so long as any Notes are outstanding, the
Company and the Guarantors shall (1) file with the SEC, to the extent such
filings are accepted by the SEC, all quarterly and annual reports and other
information, documents and reports the Company and the Guarantors would be
required to file (the "Required Reports") with the SEC if the Company and the
----------------
Guarantors were subject to Section 13 or Section 15(d) of the Exchange Act, and
(2) deliver to the Holders and the Trustee within 15 days of such filings,
copies of same. At any time that such filings are not accepted by the SEC, the
Company and the Guarantors shall deliver all of the information included in the
Required Reports to the Trustee and the Holders within 15 days of the date the
filing deadlines would have been had the Required Reports been required to be
filed with the SEC at such time. In addition, for as long as any Notes remain
outstanding, the Company and the Guarantors shall furnish to the Holders,
securities analysts and prospective investors, upon their request, the
information specified in Rule 144A(d)(4) under the Securities Act. The Company
and the Guarantors shall also comply with the other provisions of Section 314(a)
of the Trust Indenture Act.
If and so long as the Notes are listed on the Luxembourg Stock
Exchange, the Company shall cause copies of such reports to be available at the
specified office of the Paying Agent and transfer agent in Luxembourg.
SECTION 4.18. Conduct of Business. The Company shall not, and
-------------------
shall not permit any Restricted Subsidiary to, engage in any business other than
the Eyeglass Lens Business.
SECTION 4.19. Waiver of Stay, Extension or Usury Laws. Each of
---------------------------------------
the Company and any Guarantor covenants (to the extent that it may lawfully do
so) that it will not at any time insist upon, or plead, or in any manner
whatsoever claim or take the benefit or advantage of, any stay or extension law
or any usury law or other law that would prohibit or forgive the Company or such
Guarantor from paying all or any portion of the principal of, premium, if any,
or interest on the Notes as contemplated herein, wherever enacted, now or at any
time hereafter in force, or that may affect the covenants or the performance of
this Indenture; and (to the extent that it may lawfully do so) each of the
Company and any Guarantor hereby expressly waives all benefit or advantage of
any such law and covenants that it will not hinder, delay or impede the
execution of any power herein granted to the Trustee, but will suffer and permit
the execution of every such power as though no such law had been enacted.
SECTION 4.20. Compliance Certificates. (a) The Company shall
-----------------------
deliver to the Trustee within 90 days after the end of each fiscal year,
commencing with the fiscal year ending March 31, 2001 an Officers' Certificate
(which shall be signed by the Chief Financial Officer) stating (i) that a review
has been conducted of the activities of the Company and its Restricted
Subsidiaries under the supervision of the signing Officer with a view to
determining whether the Company has kept, observed, performed and fulfilled its
obligations under this Indenture, and (ii) that, to the best knowledge of the
Officer signing such certificate, the
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Company has kept, observed, performed and fulfilled each and every covenant and
condition contained in this Indenture and is not in default in the performance
or observance of any of the terms, provisions, conditions and covenants hereof
(or, if a Default or Event of Default shall have occurred, specifying each such
Default or Event of Default and describing its status and what action the
Company is taking or proposes to take with respect thereto).
(b) The Company shall, so long as any of the Notes are
outstanding, deliver to the Trustee, promptly after any Officer of the Company
becomes aware of any Default or Event of Default, an Officers' Certificate
specifying such Default or Event of Default and what action the Company is
taking or proposes to take with respect thereto.
SECTION 4.21. Maintenance of Properties. The Company shall cause
-------------------------
all properties owned by it or any Restricted Subsidiary or used or held for use
in the conduct of its business or the business of any Restricted Subsidiary to
be maintained and kept in good condition, repair and working order and supplied
with all necessary equipment and shall cause to be made all necessary repairs,
renewals, replacements, betterments and improvements thereof, all as in the
judgment of the Company may be necessary so that the business carried on in
connection therewith may be properly and advantageously conducted at all times;
provided, however, that nothing in this Section 4.21 shall prevent the Company
from discontinuing the maintenance of any such properties if such discontinuance
is, in the judgment of the Company, desirable in the conduct of the business of
the Company and the Restricted Subsidiaries as a whole and not disadvantageous
in any material respect to the Holders.
SECTION 4.22. Insurance. The Company shall maintain, and shall
---------
cause its Restricted Subsidiaries to maintain, insurance with carriers believed
by the Company to be responsible, against such risks and in such amounts, and
with such deductibles, retentions, self-insured amounts and coinsurance
provisions, as the Company believes are customarily carried by similar
businesses, of similar size, including as appropriate general liability,
property and casualty loss and interruption of business insurance.
ARTICLE FIVE
SUCCESSOR CORPORATION
SECTION 5.01. Merger, Consolidation or Sale of Assets. (a) The
---------------------------------------
Company shall not, directly or indirectly, in a single transaction or a series
of related transactions, (i) consolidate or merge with or into (other than a
merger with a Wholly-Owned Restricted Subsidiary solely for the purpose of
changing the Company's jurisdiction of incorporation to another State of the
United States), or sell, lease, transfer, convey or otherwise dispose of or
assign all or substantially all of the assets of the Company or the Company and
the Restricted Subsidiaries (taken as a whole) or (ii) adopt a Plan of
Liquidation unless, in either case:
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(1) either:
(A) the Company will be the surviving or continuing
corporation; or
(B) the Person formed by or surviving such consolidation or
merger or to which such sale, lease, conveyance or other disposition
shall be made (or, in the case of a Plan of Liquidation, any Person to
which assets are transferred) (collectively, the "Successor") is a
---------
corporation organized and existing under the laws of any State of the
United States of America or the District of Columbia, and the
Successor expressly assumes, by supplemental indenture in form and
substance satisfactory to the Trustee, all of the obligations of the
Company under the Notes, this Indenture and the Registration Rights
Agreement;
(2) immediately prior to and immediately after giving effect to such
transaction and the assumption of the obligations as set forth in clause
(1)(B) above and the incurrence of any Indebtedness to be incurred in
connection therewith, no Default shall have occurred and be continuing; and
(3) immediately after and giving effect to such transaction and the
assumption of the obligations set forth in clause (1)(B) above and the
incurrence of any Indebtedness to be incurred in connection therewith, and
the use of any net proceeds therefrom on a pro forma basis, (x) the
Consolidated Net Worth of the Company or the Successor, as the case may be,
would be at least equal to the Consolidated Net Worth of the Company
immediately prior to such transaction and (y) the Company or the Successor,
as the case may be, could incur $1.00 of additional Indebtedness pursuant
to the Coverage Ratio Exception.
For purposes of this Section 5.01, any Indebtedness of the Successor which was
not Indebtedness of the Company immediately prior to the transaction shall be
deemed to have been incurred in connection with such transaction.
(b) Except as provided in Section 11.20, no Guarantor may
consolidate with or merge with or into (whether or not such Guarantor is the
surviving Person) another Person, whether or not affiliated with such Guarantor,
unless:
(1) either:
(A) such Guarantor, another Guarantor or the Company will be
the surviving or continuing corporation; or
(B) the Person formed by or surviving any such consolidation
or merger assumes, by supplemental indenture in form and substance
satisfactory to the Trustee, all of the obligations of such Guarantor
under the Guarantee of
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such Guarantor, this Indenture and the Registration Rights Agreement,
and, is a corporation organized and existing under the laws of any
State of the United States of America or the District of Columbia;
(2) immediately after giving effect to such transaction, no Default
shall have occurred and be continuing; and
(3) immediately after giving effect to such transaction, the Company
could incur $1.00 of additional Indebtedness pursuant to the Coverage Ratio
Exception.
For purposes of clauses (a) and (b) of this Section 5.01, the transfer
(by lease, assignment, sale or otherwise, in a single transaction or series of
transactions) of all or substantially all of the properties or assets of one or
more Restricted Subsidiaries, the Capital Stock of which constitutes all or
substantially all of the properties and assets of the Company, will be deemed to
be the transfer of all or substantially all of the properties and assets of the
Company.
(c) Upon any consolidation, combination or merger of the Company or
a Guarantor, or any transfer of all or substantially all of the assets of the
Company in accordance with this Section 5.01, in which the Company or such
Guarantor is not the continuing obligor under the Notes or its Guarantee, the
surviving entity formed by such consolidation or into which the Company or such
Guarantor is merged or to which the conveyance, lease or transfer is made will
succeed to, and be substituted for, and may exercise every right and power of,
the Company or such Guarantor under this Indenture, the Notes and any Guarantees
with the same effect as if such surviving entity had been named therein as the
Company or such Guarantor and, except in the case of a conveyance, transfer or
lease, the Company or such Guarantor, as the case may be, will be released from
the obligation to pay the principal of and interest on the Notes or in respect
of its Guarantee, as the case may be, and all of the Company's or such
Guarantor's other obligations and covenants under the Notes, this Indenture and
its Guarantee, if applicable.
(d) Notwithstanding the foregoing clauses (a) and (b), any
Restricted Subsidiary may merge into the Company or a Guarantor.
SECTION 5.02. Successor Substituted. In the event of a sale,
---------------------
assignment, transfer, conveyance or other disposition (other than a lease)
described in and complying with the conditions listed in Section 5.01 in which
the Company is not the Surviving Entity and the Surviving Entity assumes all the
obligations of the Company under the Notes, this Indenture and the Registration
Rights Agreement, the Surviving Entity will succeed to, and be substituted for,
and may exercise every right and power of, the Company under such agreements and
the Company will be discharged from its obligations under the Notes, this
Indenture and the Registration Rights Agreement.
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ARTICLE SIX
DEFAULT AND REMEDIES
SECTION 6.01. Events of Default. The following shall be events of
-----------------
default ("Events of Default") under this Indenture:
-----------------
(a) failure by the Company to pay interest on any of the Notes when
it becomes due and payable and the continuance of any such failure for 30
days;
(b) failure by the Company to pay the principal on any of the Notes
when it becomes due and payable, whether at stated maturity, upon
redemption, upon purchase, upon acceleration or otherwise;
(c) failure by the Company to comply with any of its agreements or
covenants described in Section 5.01 hereof or in respect of its obligations
to make a Change of Control Offer as described in Section 4.12;
(d) failure by the Company to comply with any other agreement or
covenant in this Indenture and continuance of this failure for 60 days
after notice of the failure has been given to the Company by the Trustee or
by the Holders of at least 25% of the aggregate principal amount of the
Notes then outstanding;
(e) default under any mortgage, indenture or other instrument or
agreement under which there may be issued or by which there may be secured
or evidenced Indebtedness of the Company or any Restricted Subsidiary,
whether such Indebtedness now exists or is incurred after the date of this
Indenture, which default:
(i) is caused by a failure to pay when due principal on such
Indebtedness within the applicable express grace period,
(ii) results in the acceleration of such Indebtedness prior to
its express final maturity, or
(iii) results in the commencement of judicial proceedings to
foreclose upon, or the exercise remedies under applicable law or
applicable security documents to take ownership of, the assets
securing such Indebtedness, and
in each case, the principal amount of such Indebtedness, together with any
other Indebtedness with respect to which an event described in clause (i),
(ii) or (iii) has occurred and is continuing, aggregates $10.0 million or
more;
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(f) one or more judgments or orders that exceed $10.0 million in the
aggregate (net of amounts covered by insurance or bonded) for the payment
of money have been entered by a court or courts of competent jurisdiction
against the Company or any Restricted Subsidiary and such judgment or
judgments have not been satisfied, stayed, annulled or rescinded within 60
days of being entered;
(g) the Company or any Restricted Subsidiary, pursuant to or within
the meaning of any Bankruptcy Law,
(i) commences a voluntary case,
(ii) consents to the entry of an order for relief against it in
an involuntary case,
(iii) consents to the appointment of a Custodian of it or for
all or substantially all of its assets, or
(iv) makes a general assignment for the benefit of its
creditors;
(h) a court of competent jurisdiction enters an order or decree under
any Bankruptcy Law that:
(i) is for relief against the Company or any Restricted
Subsidiary as debtor in an involuntary case,
(ii) appoints a Custodian of the Company or any Restricted
Subsidiary or a Custodian for all or substantially all of the assets
of the Company or any Restricted Subsidiary, or
(iii) orders the liquidation of the Company or any Restricted
Subsidiary, and the order or decree remains unstayed and in effect for
60 days; or
(i) any Guarantee ceases to be in full force and effect (other than
in accordance with the terms of such Guarantee and this Indenture) or is
declared null and void and unenforceable or found to be invalid or any
Guarantor denies its liability under its Guarantee (other than by reason of
release of a Guarantor from its Guarantee in accordance with the terms of
this Indenture and its Guarantee).
SECTION 6.02. Acceleration.
------------
(a) If an Event of Default (other than an Event of Default specified
in Section 6.01(g) or (h) involving the Company), shall have occurred and be
continuing under this Indenture, the Trustee, by written notice to the Company,
or the Holders of at least 25% in aggregate principal amount of the Notes then
outstanding by written notice to the Company
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and the Trustee, may declare all amounts owing under the Notes to be due and
payable immediately. Upon such declaration of acceleration, the aggregate
principal of and accrued and unpaid interest on the outstanding Notes shall
immediately become due and payable; provided, however, that after such
acceleration, but before a judgment or decree based on acceleration, the Holders
of a majority in aggregate principal amount of such outstanding Notes may, under
certain circumstances, rescind and annul such acceleration if all Events of
Default, other than the nonpayment of accelerated principal and interest, have
been cured or waived as provided in this Indenture governing such Notes. If an
Event of Default specified in Section 6.01(g) or (h) involving the Company
occurs, all outstanding Notes shall become due and payable without any further
action or notice.
(b) The Trustee shall, within 30 days after the occurrence of
any Default with respect to the Notes, give the Holders notice of all uncured
Defaults thereunder known to it; provided, however, that, except in the case of
an Event of Default in payment with respect to the Notes or a Default in
complying with Section 5.01, the Trustee shall be protected in withholding such
notice if and so long as a committee of its trust officers in good faith
determines that the withholding of such notice is in the interest of the
Holders.
(c) No Holder will have any right to institute any proceeding
with respect to this Indenture or for any remedy hereunder, unless the Trustee:
(1) has failed to act for a period of 90 days after receiving
written notice of a continuing Event of Default by such Holder and a
request to act by Holders of at least 25% in aggregate principal amount
of Notes outstanding;
(2) has been offered indemnity satisfactory to it in its
reasonable judgment; and
(3) has not received from the Holders of a majority in aggregate
principal amount of the outstanding Notes a direction inconsistent with
such request.
However, such limitations do not apply to a suit instituted by a
Holder of any Note for enforcement of payment of the principal of or interest on
such Note on or after the due date therefor (after giving effect to the grace
period specified in Section 6.01(a) above.
SECTION 6.03. Other Remedies. If an Event of Default occurs and
--------------
is continuing, the Trustee may pursue any available remedy by proceeding at law
or in equity to collect the payment of principal of, premium, if any, or
interest on the Notes or to enforce the performance of any provision of the
Notes or this Indenture.
The Trustee may maintain a proceeding even if it does not possess
any of the Notes or does not produce any of them in the proceeding. Holders of
the Notes may not en-
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force this Indenture or the Notes except as provided in Section 6.02, Section
6.05, Section 6.06 and Section 6.07.
SECTION 6.04. Waiver of Past Defaults. Subject to Sections 6.02,
-----------------------
6.07 and 9.02, the Holders of at least a majority in principal amount of the
outstanding Notes, by notice to the Trustee, may waive an existing Default or
Event of Default and its consequences, except a Default in the payment of
principal of, premium, if any, or interest on any Note as specified in clause
(a) or (b) of Section 6.01 which cannot be waived without the consent of the
Holder of such Note or in respect of a covenant or provision of this Indenture
which cannot be modified or amended without the consent of the Holder of each
outstanding Note affected. Upon any such waiver, such Default shall cease to
exist, and any Event of Default arising therefrom shall be deemed to have been
cured, for every purpose of this Indenture; but no such waiver shall extend to
any subsequent or other Default or Event of Default or impair any right
consequent thereto.
SECTION 6.05. Control by Majority. Subject to Section 7.02(e),
-------------------
the Holders of a majority in aggregate principal amount of the Notes may direct
the time, method and place of conducting any proceeding for any remedy available
to the Trustee or of exercising any trust or power conferred on the Trustee.
However, the Trustee may refuse to follow any direction that conflicts with law
or this Indenture or that the Trustee determines is unduly prejudicial to the
rights of other Holders or would involve the Trustee in personal liability;
provided, however, that the Trustee may take any other action deemed proper by
the Trustee that is not inconsistent with such direction.
SECTION 6.06. Limitation on Suits. A Holder may not pursue any
-------------------
proceeding, judicial or otherwise, with respect to this Indenture and the Notes
or for the appointment of a receiver or trustee, or for any other remedy
hereunder unless:
(i) the Holder gives the Trustee written notice of a
continuing Event of Default;
(ii) the Holders of at least 25% in aggregate principal amount
of outstanding Notes make a written request to the Trustee to pursue
the remedy;
(iii) such Holder or Holders offer the Trustee indemnity
satisfactory to the Trustee against any costs, liability or expense;
(iv) the Trustee does not comply with the request within 15
days after receipt of the request and the offer of indemnity; and
(v) during such 15-day period, the Holders of a majority in
aggregate principal amount of the outstanding Notes do not give the
Trustee a direction that is inconsistent with the request.
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For purposes of Section 6.05 of this Indenture and this Section
6.06, the Trustee shall comply with TIA Section 316(a) in making any
determination of whether the Holders of the required aggregate principal amount
of outstanding Notes have concurred in any request or direction of the Trustee
to pursue any remedy available to the Trustee or the Holders with respect to
this Indenture and the Notes or otherwise under the law.
A Holder may not use this Indenture to prejudice the rights of
another Holder or to obtain a preference or priority over such other Holder.
SECTION 6.07. Rights of Holders to Receive Payment.
------------------------------------
Notwithstanding any other provision of this Indenture, the right of any Holder
of a Note to receive payment of the principal amount of, Liquidated Damages, if
any, or interest on, such Note or to bring suit for the enforcement of any such
payment, on or after the due date expressed in the Notes, shall not be impaired
or affected without the consent of such Holder.
SECTION 6.08. Collection Suit by Trustee. If an Event of Default
--------------------------
in payment of principal, premium or interest specified in clause (a), (b) or (c)
of Section 6.01 occurs and is continuing, the Trustee may recover judgment in
its own name and as trustee of an express trust against the Company or any other
obligor of the Notes for the whole amount of principal, premium, if any, and
accrued interest remaining unpaid, together with interest on overdue principal
and premium and, to the extent that payment of such interest is lawful, interest
on overdue installments of interest, in each case at the rate specified in the
Notes, and such further amount as shall be sufficient to cover the costs and
expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel.
SECTION 6.09. Trustee May File Proofs of Claim. The Trustee may
--------------------------------
file such proofs of claim and other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee (including any claim for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 7.07) and the Holders allowed in any judicial proceedings relative to
the Company (or any other obligor of the Notes), its creditors or its property
and shall be entitled and empowered to collect and receive any monies,
securities or other property payable or deliverable upon conversion or exchange
of the Notes or upon any such claims and to distribute the same, and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or other
similar official in any such judicial proceeding is hereby authorized by each
Holder to make such payments to the Trustee and, in the event that the Trustee
shall consent to the making of such payments directly to the Holders, to pay to
the Trustee any amount due to it for the reasonable compensation expenses,
disbursements and advances of the Trustee, its agent and counsel, and any other
amounts due the Trustee under Section 7.07. Nothing herein contained shall be
deemed to empower the Trustee to authorize or consent to, or accept or adopt on
behalf of any Holder, any plan of reorganization, arrangement, adjustment or
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composition affecting the Notes or the rights of any Holder thereof, or to
authorize the Trustee to vote in respect of the claim of any Holder in any such
proceeding.
SECTION 6.10. Priorities. If the Trustee collects any money
----------
pursuant to this Article Six it shall pay out the money in the following order:
First: to the Trustee for all amounts due under Section 7.07 and
any receiver, manager, administrative receiver, liquidator or agent
appointed subject to this Indenture;
Second: to Holders for amounts then due and unpaid for principal
of, premium, if any, and interest on the Notes in respect of which or
for the benefit of which such money has been collected, ratably,
without preference or priority of any kind, according to the amounts
due and payable on such Notes for principal, premium, if any, and
interest, respectively; and
Third: to the Company and any other obligors of the Notes, as
their interests may appear, or as a court of competent jurisdiction may
direct.
The Trustee, upon prior written notice to the Company, may fix a
record date and payment date for any payment to Holders pursuant to this Section
6.10.
SECTION 6.11. Undertaking for Costs. In any suit for the
---------------------
enforcement of any right or remedy under this Indenture or in any suit against
the Trustee for any action taken or omitted by it as Trustee, a court may
require any party litigant in such suit to file an undertaking to pay the costs
of the suit, and the court may assess reasonable costs, including reasonable
attorneys' fees and expenses, against any party litigant in the suit having due
regard to the merits and good faith of the claims or defenses made by the party
litigant. This Section 6.11 does not apply to a suit by the Trustee, a suit by a
Holder pursuant to Section 6.07 of this Indenture, or a suit by Holders of more
than 10% in principal amount of the outstanding Notes.
SECTION 6.12. Restoration of Rights and Remedies. If the Trustee
----------------------------------
or any Holder has instituted any proceeding to enforce any right or remedy under
this Indenture and such proceeding has been discontinued or abandoned for any
reason, or has been determined adversely to the Trustee or to such Holder, then,
and in every such case, subject to any determination in such proceeding, the
Company, the Trustee and the Holders shall be restored severally and
respectively to their former positions hereunder and thereafter all rights and
remedies of the Company, Trustee and the Holders shall continue as though no
such proceeding had been instituted.
SECTION 6.13. Rights and Remedies Cumulative. Except as otherwise
------------------------------
provided with respect to the replacement or payment of mutilated, destroyed,
lost or wrongfully
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taken Notes in Section 2.08, no right or remedy herein conferred upon or
reserved to the Trustee or to the Holders is intended to be exclusive of any
other right or remedy, and every right and remedy shall, to the extent permitted
by law, be cumulative and in addition to every other right and remedy given
hereunder or now or hereafter existing at law or in equity or otherwise. The
assertion or employment of any right or remedy hereunder, or otherwise, shall
not prevent the concurrent assertion or employment of any other appropriate
right or remedy.
SECTION 6.14. Delay or Omission Not Waiver. No delay or omission
----------------------------
of the Trustee or of any Holder to exercise any right or remedy accruing upon
any Event of Default shall impair any such right or remedy or constitute a
waiver of any such Event of Default or an acquiescence therein. Every right and
remedy given by this Article Six or by law to the Trustee or to the Holders may
be exercised from time to time, and as often as may be deemed expedient, by the
Trustee or by the Holders, as the case may be.
ARTICLE SEVEN
TRUSTEE
SECTION 7.01. General. The duties and responsibilities of the
-------
Trustee shall be as provided by the TIA and as set forth herein. The Trustee
undertakes to perform such duties as are specifically set forth in this
Indenture, and no implied covenants or obligations shall be read into this
Indenture against the Trustee. Notwithstanding the foregoing, no provision of
this Indenture shall require the Trustee to expend or risk its own funds or
otherwise incur any financial liability in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers, if it shall have
reasonable grounds for believing that repayment of such funds or indemnity
satisfactory to it against such risk or liability is not reasonably assured to
it. Whether or not therein expressly so provided, every provision of this
Indenture relating to the conduct or affecting the liability of or affording
protection to the Trustee shall be subject to the provisions of this Article
Seven.
SECTION 7.02. Certain Rights, Duties and Responsibilities of
-----------------------------------------------
Trustee. Subject to TIA Sections 315(a) through (d):
-------
(a) if any Event of Default has occurred and is continuing of
which a Responsible Officer of the Trustee has actual knowledge, the
Trustee shall exercise such of the rights and powers vested in it by
this Indenture, and use the same degree of care and skill in their
exercise as a prudent Person would exercise or use under the
circumstances in the conduct of such Person's own affairs;
(b) the Trustee may conclusively rely and shall be protected
in acting or refraining from acting, upon any resolution, certificate,
statement, instrument, opinion,
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report, notice, request, direction, consent, order, bond, debenture,
note, other evidence of indebtedness or other paper or document
(whether in its original or facsimile form) believed by it to be
genuine and to have been signed or presented by the proper person. The
Trustee need not investigate any fact or matter stated in the document;
(c) before the Trustee acts or refrains from acting, it may
require an Officers' Certificate and/or an Opinion of Counsel, which
shall conform to the certificate or opinion described in Section 10.03
or Section 10.04, as the case may be. The Trustee shall not be liable
for any action it takes or omits to take in good faith in reliance on
such certificate or opinion;
(d) the Trustee may consult with and act through attorneys and
agents of its selection and the advice of such attorneys and agents
shall be full and complete authorization and protection in respect of
any action taken, suffered or omitted by it hereunder in good faith and
in reliance thereon;
(e) the Trustee shall be under no obligation to exercise any of
the rights or powers vested in it by this Indenture at the request or
direction of any of the Holders, unless such Holders shall have offered
to the Trustee reasonable security or indemnity satisfactory to it
against the costs, expenses and liabilities that might be incurred by
it in compliance with such request or direction;
(f) the Trustee shall not be liable for any action it takes or
omits to take in good faith that it believes to be authorized or within
its rights or powers or for any action it takes or omits to take in
accordance with the direction of the Holders of the requisite
percentage in principal amount of the outstanding Notes required by the
Indenture relating to the time, method and place of conducting any
proceeding for any remedy available to the Trustee, or exercising any
trust or power conferred upon the Trustee, under this Indenture;
(g) whenever in the administration of this Indenture the Trustee
shall deem it desirable that a matter be proved or established prior to
taking, suffering or omitting any action hereunder, the Trustee (unless
other evidence be herein specifically prescribed), in the absence of
bad faith on its part, may conclusively rely, as to the truth of the
statements and the correctness of the opinions expressed therein, upon
an Officers' Certificate or an Opinion of Counsel furnished to it and
conforming with the requirements of this Indenture; but in the case of
any such Officers' Certificate or Opinion of Counsel which by provision
hereof are specifically required to be furnished to the Trustee, the
Trustee shall be under a duty to examine the same to determine whether
or not they conform to the requirements of this Indenture (but need not
confirm or investigate the accuracy of mathematical calculations or
other facts stated therein).
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(h) the Trustee shall not be bound to make any investigation
into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order,
bond, debenture, note, other evidence of indebtedness or other paper or
document, but the Trustee, in its discretion, may make such further inquiry
or investigation into such facts or matters as it may see fit, and, if the
Trustee shall determine to make such further inquiry or investigation, it
shall be entitled to examine the books, records and premises of the Company
personally or by agent or attorney at the sole cost of the Company and shall
incur no liability or additional liability of any kind by reason of such
inquiry or investigation;
(i) the Trustee shall not be deemed to have knowledge of any
Default or Event of Default except any Default or Event of Default of which
a Responsible Officer of the Trustee shall have received written
notification, or obtained actual knowledge;
(j) the Trustee may execute any of the trusts or powers
hereunder or perform any duties hereunder either directly or by or through
agents or attorneys and the Trustee shall not be responsible for any
misconduct or negligence on the part of any agent or attorney appointed with
due care by it hereunder; and
(k) the rights, privileges, protections, immunities and
benefits given to the Trustee, including, without limitation, its right to
be indemnified, are extended to, and shall be enforceable by, the Trustee in
each of its capacities hereunder, and to each agent, custodian and other
Person employed to act hereunder.
SECTION 7.03. Individual Rights of Trustee. The Trustee, in
----------------------------
its individual or any other capacity, may become the owner or pledgee of Notes
and may otherwise deal with the Company or its Affiliates with the same rights
it would have if it were not the Trustee. Any Agent may do the same with like
rights. However, the Trustee is subject to TIA Sections 310(b) and 311.
SECTION 7.04. Trustee's Disclaimer. The Trustee (a) makes no
--------------------
representation as to the validity, accuracy or adequacy of this Indenture, any
offering materials or the Notes, (b) shall not be accountable for the Company's
use or application of the proceeds from the Notes and (c) shall not be
responsible for any statement in the Notes other than its certificate of
authentication.
SECTION 7.05. Notice of Default. If any Default or any Event
-----------------
of Default occurs and is continuing and if such Default or Event of Default is
actually known to a Responsible Officer of the Trustee, the Trustee shall mail
to each Holder in the manner and to the extent provided in TIA Section 313(c)
notice of the Default or Event of Default within 90 days after it occurs, unless
such Default or Event of Default has been cured; provided, however, that, except
in the case of a default in the payment of the principal of, premium, if any,
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or interest on any Note, the Trustee shall be protected in withholding such
notice if and so long as the Board of Directors, the executive committee or a
trust committee of directors and/or Responsible Officers of the Trustee in good
faith determine that the withholding of such notice is in the interest of the
Holders. The Company shall give the Trustee notice of any uncured Default or
Event of Default within 30 days after any Responsible Officer of the Company
becomes aware of or receives actual notice of such Event of Default.
SECTION 7.06. Reports by Trustee to Holders. Within 60 days
-----------------------------
after each May 15, beginning with May 15, 2001, the Trustee shall mail to each
Holder as provided in TIA Section 313(c) a brief report dated as of such May 15
if required by TIA Section 313(a).
SECTION 7.07. Compensation and Indemnity. The Company shall
--------------------------
pay to the Trustee such compensation as shall be agreed upon in writing for its
services. The compensation of the Trustee shall not be limited by any law on
compensation of a trustee of an express trust. The Company shall reimburse the
Trustee upon request for all reasonable out-of-pocket expenses and advances
incurred or made by the Trustee in each of its capacities hereunder. Such
expenses shall include the reasonable compensation and expenses of the Trustee's
agents and counsel.
The Company shall indemnify the Trustee, in each of its
capacities, and any successor of the Trustee, in each of its capacities, for,
and hold it harmless against, any and all claims, damages, losses, costs,
liability or expense (including, without limitation, the fees and expenses of
its counsel and advisors) and taxes (other than taxes based on the income of the
Trustee) incurred by it without negligence or willful misconduct on its part
arising out of or in connection with the acceptance or administration of this
Indenture and its duties under this Indenture and the Notes and the exercise of
its rights and powers under this Indenture, including the costs and expenses of
defending itself against any claim or liability (whether asserted by the
Company, any Holder or any other Person) and of complying with any process
served upon it or any of its officers in connection with the exercise or
performance of any of its powers or duties under this Indenture and the Notes
and the exercise of the rights of the Trustee thereunder. The Company need not
pay for any settlement made without its consent, which consent shall not be
unreasonably withheld.
To secure the Company's payment obligations in this Section
7.07, the Trustee shall have a lien prior to the Notes on all money or property
held or collected by the Trustee, in its capacity as Trustee, except money or
property held in trust to pay principal of, Liquidated Damages, if any, and
interest on particular Notes.
If the Trustee incurs expenses or renders services after the
occurrence of an Event of Default specified in clauses (g) and (h) of Section
6.01, the expenses (including the reasonable charges and expenses of its
counsel) and the compensation for the services will be intended to constitute
expenses of administration under Title 11 of the United States Bankruptcy Code
or any applicable foreign, federal or state law for the relief of debtors.
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The provisions of this Section 7.07 shall survive the
termination of this Indenture, payment of the Notes and/or the removal or
resignation of the Trustee.
SECTION 7.08. Replacement of Trustee. A resignation or removal
----------------------
of the Trustee and appointment of a successor Trustee shall become effective
only upon the successor Trustee's acceptance of appointment as provided in this
Section 7.08.
The Trustee may resign at any time by so notifying the Company
in writing at least 30 days prior to the date of the proposed resignation. The
Holders of a majority in principal amount of the outstanding Notes may remove
the Trustee by so notifying the Trustee in writing and may appoint a successor
Trustee with the prior written consent of the Company. The Company may remove
the Trustee by a Board Resolution if: (a) the Trustee is no longer eligible
under Section 7.10; (b) the Trustee is adjudged a bankrupt or an insolvent; (c)
a receiver or other public officer takes charge of the Trustee or its property;
or (d) the Trustee becomes incapable of acting.
If the Trustee resigns or is removed, or if a vacancy exists
in the office of Trustee for any reason, the Company shall promptly appoint a
successor Trustee. Within one year after the successor Trustee takes office, the
Holders of a majority in principal amount of the outstanding Notes may appoint a
successor Trustee to replace the successor Trustee appointed by the Company. If
the successor Trustee does not deliver its written acceptance required by the
next succeeding paragraph of this Section 7.08 within 30 days after the retiring
Trustee resigns or is removed, the retiring Trustee, the Company or the Holders
of a majority in principal amount of the outstanding Notes may petition, at the
expense of the Company, any court of competent jurisdiction for the appointment
of a successor Trustee.
A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company. Immediately after the
delivery of such written acceptance, subject to the lien provided in Section
7.07, (i) the retiring Trustee shall transfer all property held by it as Trustee
to the successor Trustee, (ii) the resignation or removal of the retiring
Trustee shall become effective and (iii) the successor Trustee shall have all
the rights, powers and duties of the Trustee under this Indenture. A successor
Trustee shall mail notice of its succession to each Holder.
If the Trustee is no longer eligible under Section 7.10, any
Holder who satisfies the requirements of TIA Section 310(b) may petition any
court of competent jurisdiction for the removal of the Trustee and the
appointment of a successor Trustee.
The Company shall give notice of any resignation and any
removal of the Trustee and each appointment of a successor Trustee to all
Holders. Each notice shall include the name of the successor Trustee and the
address of its Corporate Trust Office.
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Notwithstanding replacement of the Trustee pursuant to this
Section 7.08, the Company's obligation under Section 7.07 shall continue for the
benefit of the retiring Trustee.
SECTION 7.09. Successor Trustee by Merger, etc. If the Trustee
--------------------------------
consolidates with, merges or converts into, or transfers all or substantially
all of its corporate trust business to, another corporation or national banking
association, the resulting, surviving or transferee corporation or national
banking association without any further act shall be the successor Trustee with
the same effect as if the successor Trustee had been named as the Trustee
herein.
SECTION 7.10. Eligibility. This Indenture shall always have a
-----------
Trustee who satisfies the requirements of TIA Section 310(a)(1). The Trustee
shall have a combined capital and surplus of at least $50,000,000 as set forth
in its most recent published annual report of condition.
SECTION 7.11. Money Held in Trust. The Trustee shall not be
-------------------
liable for interest on any money received by it except as the Trustee may agree
in writing with the Company. Money held in trust by the Trustee need not be
segregated from other funds except to the extent required by law and except for
money held in trust under Article Eight of this Indenture.
SECTION 7.12. Withholding Taxes. The Paying Agent, as agent
-----------------
for the Company, shall exclude and withhold from each payment of principal and
interest and other amounts due hereunder or under the Notes any and all
withholding taxes applicable thereto as required by law, as directed in writing
by the Company. The Paying Agent agrees to act as such withholding agent and, in
connection therewith, whenever any present or future taxes or similar charges
are required to be withheld with respect to any amounts payable in respect of
the Notes, to withhold such amounts, as directed in writing by the Company, and
timely pay the same to the appropriate authority, as directed in writing by the
Company, in the name of and on behalf of the Holders of the Notes, and to file
any necessary withholding tax returns or statements when due. The Company or the
Trustee shall, as promptly as possible after the payment of the taxes described
above, deliver to each Holder of a Note documentation in form satisfactory to
the Company showing the payment thereof, together with such additional
documentary evidence as such Holders may reasonably request from time to time.
SECTION 7.13. Trustee's Application for Instructions from the
-----------------------------------------------
Company. Any application by the Trustee for written instructions from the
------
Company may, at the option of the Trustee, set forth in writing any action
proposed to be taken or omitted by the Trustee under this Indenture and the date
on and/or after which such actions shall be taken or such omission shall be
effective. The Trustee shall not be liable for any action taken by, or omission
of, the Trustee in accordance with a proposal included in such application on or
after the date specified in such application (which date shall not be less than
three Business Days after the date any Officer of the Company actually receives
such application, unless any such Officer shall have consented in writing to any
earlier date) unless prior to taking any such action
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(or the effective date in the case of an omission), the Trustee shall have
received written instructions in response to such application specifying the
action to be taken or omitted.
SECTION 7.14. Appointment of Co-Trustee. (a) Notwithstanding
-------------------------
any other provisions of this Indenture, at any time, for the purpose of meeting
any legal requirement of any jurisdiction in which any part of the Notes may at
the time be located, the Trustee shall have the power and may execute and
deliver all instruments necessary to appoint one or more Persons to act as a
co-trustee or co-trustees, or separate trustee or separate trustees, of all or
any part of the Notes, and to vest in such Person or Persons, in such capacity
and for the benefit of the Holders, such title to the Notes, or any part hereof,
and subject to the other provisions of this Section, such powers, duties,
obligations, rights and trusts as the Trustee may consider necessary or
desirable. No notice to Holders of the appointment of any co-trustee or separate
trustee shall be required.
(b) Every separate trustee and co-trustee shall, to the
extent permitted by law, be appointed and act subject to the following
provisions and conditions:
(i) all rights, powers, duties and obligations conferred or
imposed upon the Trustee shall be conferred or imposed upon and
exercised or performed by the Trustee and such separate trustee or
co-trustee jointly (it being understood that such separate trustee or
co-trustee is not authorized to act separately without the Trustee
joining in such act) except to the extent that under any law of any
jurisdiction in which any particular act or acts are to be performed
the Trustee shall be incompetent or unqualified to perform such act or
acts, in which event such rights, powers, duties and obligations
(including the holding of title to the Notes or any portion thereof in
any such jurisdiction) shall be exercised and performed singly by such
separate trustee or co-trustee, but solely at the direction of the
Trustee;
(ii) no trustee hereunder shall be personally liable by
reason of any act or omission of any other trustee hereunder; and
(iii) the Trustee may at any time accept the resignation of
or remove any separate trustee or co-trustee.
(c) Any notice, request or other writing given to the
Trustee shall be deemed to have been given to each of the then separate trustees
and co-trustees, as effectively as if given to each of them. Every instrument
appointing any separate trustee or co-trustee shall refer to this Indenture and
the conditions of this Article Seven. Each separate trustee and co-trustee, upon
its acceptance of the appointment, shall be vested with the estates or property
specified in its instrument of appointment, either jointly with the Trustee or
separately, as may be provided therein, subject to all the provisions of this
Indenture, specifically including every provision of this Indenture relating to
the conduct of, affecting the liability of, or affording
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protection or rights (including the rights to compensation, reimbursement and
indemnification hereunder) to, the Trustee. Every such instrument shall be filed
with the Trustee.
(d) Any separate trustee or co-trustee may at any time
constitute the Trustee its agent or attorney-in-fact with full power and
authority, to the extent not prohibited by law, to do any lawful act under or in
respect of this Indenture on its behalf and in its name. If any separate trustee
or co-trustee shall die, become incapable of acting, resign or be removed, all
of its estates, properties, rights, remedies and trusts shall vest in and be
exercised by the Trustee, to the extent permitted by law, until the appointment
of a new trustee or successor to such separate or co-trustee.
ARTICLE EIGHT
DISCHARGE OF INDENTURE
SECTION 8.01. Termination of Company's Obligations. Except
------------------------------------
as otherwise provided in this Section 8.01, the Company may terminate its
obligations under this Indenture and the Notes if:
(i) all Notes previously authenticated and delivered (other
than destroyed, lost or stolen Notes that have been replaced or Notes
that are paid pursuant to Section 4.01 or Notes for whose payment money
or securities have theretofore been held in trust and thereafter repaid
to the Company, as provided in Section 8.05) have been delivered to the
Trustee for cancellation and the Company has paid all sums payable by
it hereunder; or
(ii) (A) the Notes mature within one year or all of them are
to be called for redemption within one year under arrangements
satisfactory to the Trustee for giving the notice of redemption, (B)
the Company irrevocably deposits in trust with the Trustee during such
one-year period, under the terms of an irrevocable trust agreement in
form and substance satisfactory to the Trustee, as trust funds solely
for the benefit of the Holders for that purpose, Euros or Government
Obligations sufficient (in the opinion of an internationally recognized
firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee), without consideration
of any reinvestment of any interest thereon, to pay principal, premium,
if, any, and interest on the Notes to maturity or redemption, as the
case may be, and to pay all other sums payable by it hereunder, (C) no
Default or Event of Default with respect to the Notes shall have
occurred and be continuing on the date of such deposit, (D) such
deposit will not result in a breach or violation of, or constitute a
default under, this Indenture or any other agreement or instrument to
which the Company or any of its Subsidiaries is a party or by which any
of them is bound and (E) the Company has deliv-
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ered to the Trustee an Officers' Certificate and an Opinion of Counsel,
in each case stating that all conditions precedent provided for herein
relating to the satisfaction and discharge of this Indenture have been
complied with.
With respect to the foregoing clause (i), the Company's
obligations under Section 7.07 shall survive such satisfaction and discharge.
With respect to the foregoing clause (ii), the Company's obligations in Sections
2.02, 2.03, 2.04, 2.05, 2.06, 2.07, 2.08, 2.10, 2.13, 4.02, 4.18, 7.07, 7.08,
8.04, 8.05 and 8.06 shall survive until the Notes are no longer outstanding.
Thereafter, only the Company's obligations in Sections 7.07, 8.05 and 8.06 shall
survive. After any such irrevocable deposit, the Trustee upon written request of
the Company shall acknowledge in writing the discharge of the Company's
obligations under the Notes and this Indenture, except for those surviving
obligations specified above.
SECTION 8.02. Defeasance and Discharge of Indenture. The
-------------------------------------
Company will be deemed to have paid and will be discharged from any and all
obligations in respect of this Indenture and the Notes on the 92nd day after the
date of the deposit referred to in clause (A) of this Section 8.02, and the
provisions of this Indenture will no longer be in effect with respect to the
Notes ("Legal Defeasance"), and the Trustee, at the expense of the Company,
----------------
shall execute proper instruments acknowledging the same, except for the
following provisions which shall survive until otherwise terminated or
discharged hereunder: (a) the rights of Holders of outstanding Notes to receive
solely from the trust fund described in clause (A) below payments in respect of
the principal of, premium, if any, and interest on such Notes when such payments
are due, (b) the Company's obligations with respect to such Notes under Article
Two and Section 4.02 hereof, (c) the rights, powers, trusts, duties, indemnities
and immunities of the Trustee hereunder, including, without limitation, Section
7.07 hereof and the Company's obligations in connection therewith and (d) this
Article Eight. Subject to compliance with this Article Eight, the Company may
exercise its option under this Section 8.02 notwithstanding the prior exercise
of its option under Section 8.03 hereof. The following conditions shall apply to
Legal Defeasance:
(A) the Company must irrevocably deposit with the Trustee, in
trust, for the benefit of the Holders, euros, Government Obligations or
a combination thereof, in such amounts as will be sufficient (without
reinvestment) in the opinion of a nationally recognized firm of
independent public accountants selected by the Company, to pay the
principal of and interest, if any, on the Notes on the stated date for
payment or on the redemption date of the principal or installment of
principal of or interest on the Notes, and the Holders must have a
valid, perfected, exclusive security interest in such trust,
(B) the Company shall have delivered to the Trustee an opinion
of counsel in the United States reasonably acceptable to the Trustee
confirming that:
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(i) the Company has received from, or there has been
published by the Internal Revenue Service, a ruling, or
(ii) since the date of this Indenture, there has been a
change in the applicable U.S. federal income tax law,
in either case to the effect that, and based thereon this opinion of
counsel shall confirm that, the Holders will not recognize income, gain or
loss for U.S. federal income tax purposes as a result of the Legal
Defeasance and will be subject to U.S. federal income tax on the same
amounts, in the same manner and at the same times as would have been the
case if such Legal Defeasance had not occurred,
(C) no Default shall have occurred and be continuing on the date of
such deposit (other than a Default resulting from the borrowing of funds to
be applied to such deposit and the grant of any Lien securing such
borrowing),
(D) the Legal Defeasance shall not result in a breach or violation of,
or constitute a default under this Indenture or any other material
agreement or instrument to which the Company or any of its Subsidiaries is
a party or by which the Company or any of its Subsidiaries is bound,
(E) the Company shall have delivered to the Trustee an Officers'
Certificate stating that the deposit was not made by it with the intent of
preferring the Holders over any other of its creditors or with the intent
of defeating, hindering, delaying or defrauding any other of its creditors
or others, and
(F) the Company shall have delivered to the Trustee an Officers'
Certificate and an opinion of counsel, each stating that the conditions
provided for in, in the case of the Officers' Certificate, (A) through (E)
and, in the case of the opinion of counsel, clauses (A) (with respect to
the validity and perfection of the security interest), (B) and (D) of this
Section 8.02 have been complied with.
Subsequent to the end of such 92nd day period with respect to this
Section 8.02, the Company's obligations in Sections 2.02, 2.03, 2.04, 2.05,
2.06, 2.07, 2.08, 2.10, 2.13, 4.02, 4.18, 7.07, 7.08, 8.05 and 8.06 shall
survive until the Notes are no longer outstanding. Thereafter, only the
Company's obligations in Sections 7.07, 8.05 and 8.06 shall survive.
After any such irrevocable deposit, the Trustee upon request shall
acknowledge in writing the discharge of the Company's obligations under the
Notes and this Indenture except for those surviving obligations in the
immediately preceding paragraph.
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SECTION 8.03. Defeasance of Certain Obligations. The Company
---------------------------------
may omit to comply with any term, provision or condition set forth in Section
5.01(a)(3) and Sections 4.03 through 4.18 and Sections 4.20 through 4.22 and
breach of clauses (e) and (f) under Section 6.01 shall be deemed not to be
Events of Default (and "Covenant Defeasance"), in each case with respect to the
-------------------
outstanding Notes if:
(A) the Company must irrevocably deposit with the Trustee, in trust,
for the benefit of the Holders, euros, Government Obligations or a
combination thereof, in such amounts as will be sufficient (without
reinvestment) in the opinion of a nationally recognized firm of independent
public accountants selected by the Company, to pay the principal of and
interest, if any, on the Notes on the stated date for payment or on the
redemption date of the principal or installment of principal of or interest
on the Notes, and the Holders must have a valid, perfected, exclusive
security interest in such trust,
(B) the Company shall have delivered to the Trustee an opinion of
counsel in the United States reasonably acceptable to such Trustee
confirming that the Holders will not recognize income, gain or loss for
U.S. federal income tax purposes as a result of such Covenant Defeasance
and will be subject to U.S. federal income tax on the same amounts, in the
same manner and at the same times as would have been the case if the
Covenant Defeasance had not occurred,
(C) no Default shall have occurred and be continuing on the date of
such deposit (other than a Default resulting from the borrowing of funds to
be applied to such deposit and the grant of any Lien securing such
borrowing),
(D) the Covenant Defeasance shall not result in a breach or violation
of, or constitute a default under this Indenture or any other material
agreement or instrument to which the Company or any of its Subsidiaries is
a party or by which the Company or any of its Subsidiaries is bound,
(E) the Company shall have delivered to the Trustee an Officers'
Certificate stating that the deposit was not made by it with the intent of
preferring the Holders over any other of its creditors or with the intent
of defeating, hindering, delaying or defrauding any other of its creditors
or others, and
(F) the Company shall have delivered to the Trustee an Officers'
Certificate and an opinion of counsel, each stating that the conditions
provided for in, in the case of the Officers' Certificate, (A) through (E)
and, in the case of the opinion of counsel, clauses (A) (with respect to
the validity and perfection of the security interest), (B) and (D) of this
Section 8.03 have been complied with.
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If the funds deposited with the Trustee to effect Covenant
Defeasance are insufficient to pay the principal of and interest on the Notes
when due, then the Company's obligations and the obligations of Guarantors under
the Indenture will be revived and no such defeasance will be deemed to have
occurred.
SECTION 8.04. Application of Trust Money. Subject to Section
--------------------------
8.06, the Trustee or Paying Agent shall hold in trust money or Government
Obligations deposited with it pursuant to Section 8.01, 8.02 or 8.03, as the
case may be, and shall apply the deposited money and the money from Government
Obligations in accordance with the Notes and this Indenture to the payment of
principal of, premium, if any, and interest on the Notes.
SECTION 8.05. Repayment to Company. Subject to Sections 7.07,
--------------------
8.01, 8.02 and 8.03, the Trustee and the Paying Agent shall promptly pay to the
Company upon request set forth in an Officers' Certificate any excess money held
by them at any time and thereupon shall be relieved from all liability with
respect to such money. The Trustee and the Paying Agent shall pay to the Company
upon written request any money held by them for the payment of principal,
premium, if any, or interest that remains unclaimed for two years; provided that
the Trustee or such Paying Agent before being required to make any payment shall
cause to be published at the expense of the Company once in a newspaper of
general circulation in the City of New York and the Trustee or such Paying Agent
will cause a copy of such notice to be published in a daily newspaper with
general circulation in Luxembourg (expected to be the Luxemburger Wort) or mail
to each Holder entitled to such money at such Holder's address (as set forth in
the Register) notice that such money remains unclaimed and that after a date
specified therein (which shall be at least 30 days from the date of such
publication or mailing) any unclaimed balance of such money then remaining will
be repaid to the Company. After payment to the Company, Holders entitled to such
money must look to the Company for payment as general creditors unless an
applicable law designates another Person, and all liability of the Trustee and
such Paying Agent with respect to such money shall cease.
SECTION 8.06. Reinstatement. If the Trustee or Paying Agent is
-------------
unable to apply any money or Government Obligations in accordance with Section
8.01, 8.02 or 8.03, as the case may be, by reason of any legal proceeding or by
reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, the Company's
obligations under this Indenture and the Notes shall be revived and reinstated
as though no deposit had occurred pursuant to Section 8.01, 8.02 or 8.03, as the
case may be, until such time as the Trustee or Paying Agent is permitted to
apply all such money or Government Obligations in accordance with Section 8.01,
8.02 or 8.03, as the case may be; provided that, if the Company has made any
payment of principal of, premium, if any, or interest on any Notes because of
the reinstatement of its obligations, the Company shall be subrogated to the
rights of the Holders of such Notes to receive such payment from the money or
Government Obligations held by the Trustee or Paying Agent.
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ARTICLE NINE
AMENDMENTS, SUPPLEMENTS AND WAIVERS
SECTION 9.01. Without Consent of Holders. The Company, when
--------------------------
authorized by a resolution of its Board of Directors (as evidenced by a Board
Resolution), and the Trustee, may amend or supplement this Indenture, the Notes
and any Guarantee without notice to or the consent of any Holder:
(1) to cure any ambiguity, defect or inconsistency, provided
that such action does not adversely affect the interests of the Holders
in any material respect.
(2) to provide for uncertificated Notes in addition to or in
place of certificated Notes;
(3) to provide for the assumption of the Company's or any
Guarantor's obligations to Holders in the case of a merger,
consolidation, amalgamation or other combination of the Company or any
Guarantor or sale of all or substantially all of the Company's or such
Guarantor's assets;
(4) to make any change that would provide any additional
rights or benefits to the Holders of Notes or that does not materially
adversely affect the rights or interests under this Indenture of any
such Holder;
(5) to alter the form of Notes to provide for any changes in
applicable tax laws to the extent that such changes do not materially
adversely affect the rights or interests of any Holder; or
(6) to comply with requirements of the Commission in order to
effect or maintain the qualification of this Indenture under the Trust
Indenture Act.
This Section 9.01 is subject to Section 9.05.
SECTION 9.02. With Consent of Holders or Interests. Subject to
------------------------------------
Sections 6.04 and 6.07 and without prior notice to the Holders, the Company,
when authorized by its Board of Directors (as evidenced by a Board Resolution),
and the Trustee may amend this Indenture, the Notes or any Guarantee with the
written consent of the Holders of a majority in aggregate principal amount of
the Notes then outstanding, and the Holders of a majority in aggregate principal
amount of the Notes then outstanding by written notice to the Trustee may waive
compliance by the Company with any provision of this Indenture, the Notes or any
Guarantee; provided, that no such amendment may, without the consent of the
Holders of two-thirds in aggregate principal amount of Notes then outstanding,
amend the obligation of
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the Company under Section 4.12 or in the obligations of the Company to make a
Net Proceeds Offer or the related definitions that could adversely affect the
rights or interests of any Holder.
Notwithstanding the provisions of this Section 9.02, without
the consent of each Holder affected, an amendment or waiver, including a waiver
pursuant to Section 6.04, may not:
(i) change the maturity of any Note;
(ii) reduce the amount, extend the due date or otherwise
affect the terms of any scheduled payment of interest on or principal
of the Notes;
(iii) except as permitted by (A) above, reduce any premium
payable upon optional redemption or acceleration of the Notes, change
the date on which any Notes are subject to redemption or otherwise
alter the provisions with respect to the redemption of the Notes;
(iv) make any Note payable in money or currency other than
that stated in the Notes;
(v) (x) take any action that would subordinate the Notes or
the Note Guarantees to any other Indebtedness of the Issuer or any
Guarantor, respectively, or (y) otherwise affect the ranking or
priority of the Notes or the Note Guarantees, in the case of this
clause (y), in a manner which adversely affects the Holders;
(vi) reduce the percentage of Holders necessary to consent
to an amendment or waiver to the Indenture or the Notes;
(vii) impair the rights of Holders to receive payments of
principal of or interest on the Notes;
(viii) release any Guarantor from any of its obligations under
its Note Guarantee or the Indenture, except as permitted by the
Indenture; or
(ix) make any change in these amendment and waiver
provisions.
It shall not be necessary for the consent of the Holders under this
Section 9.02 to approve the particular form of any proposed amendment,
supplement or waiver, but it shall be sufficient if such consent approves the
substance thereof.
After an amendment, supplement or waiver under this Section 9.02
becomes effective, the Company shall mail to the Holders affected thereby a
notice briefly describing the amendment, supplement or waiver. The Company shall
mail supplemental indentures to Holders upon request. Any failure of the Company
to mail such notice, or any defect therein,
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shall not, however, in any way impair or affect the validity of any such
supplemental indenture or waiver.
This Section 9.02 is subject to Section 9.05.
SECTION 9.03. Revocation and Effect of Consent. Until an
--------------------------------
amendment or waiver becomes effective, a consent to it by a Holder is a
continuing consent by the Holder and every subsequent Holder of a Note or
portion of a Note that evidences the same debt as the Note of the consenting
Holder, even if notation of the consent is not made on any Note. However, any
such Holder or subsequent Holder may revoke the consent as to its Note or
portion of its Note. Such revocation shall be effective only if the Trustee
receives the notice of revocation before the date the amendment, supplement or
waiver becomes effective. An amendment, supplement or waiver shall become
effective on receipt by the Trustee of written consents from the Holders of the
requisite percentage in principal amount of the outstanding Notes and any other
conditions thereto specified in the notice relating thereto.
The Company may, but shall not be obligated to, fix a record
date for the purpose of determining the Holders entitled to consent to any
amendment, supplement or waiver. If a record date is fixed, then,
notwithstanding the last two sentences of the immediately preceding paragraph,
those persons who were Holders at such record date (or their duly designated
proxies) and only those persons shall be entitled to consent to such amendment,
supplement or waiver or to revoke any consent previously given, whether or not
such persons continue to be Holders after such record date. No such consent
shall be valid or effective for more than 90 days after such record date.
After an amendment, supplement or waiver becomes effective, it
shall bind every Holder unless it is of the type described in any of clauses (i)
through (ix) of Section 9.02. In case of an amendment or waiver of the type
described in clauses (i) through (ix) of Section 9.02, the amendment or waiver
shall bind each Holder who has consented to it and every subsequent Holder of a
Note that evidences the same indebtedness as the Note of the consenting Holder.
SECTION 9.04. Notation on or Exchange of Notes. If an
--------------------------------
amendment, supplement or waiver changes the terms of a Note, the Trustee may
require the Holder to deliver it to the Trustee. The Trustee shall, if directed
in writing by the Company, place an appropriate notation on the Note about the
changed terms and return it to the Holder and the Trustee shall, if directed in
writing by the Company, place an appropriate notation on any Note thereafter
authenticated. Alternatively, if the Company so determines, the Company in
exchange for the Note shall issue and the Trustee upon the Company's written
direction in the form of a Company Order shall authenticate a new Note that
reflects the changed terms.
SECTION 9.05. Trustee to Sign Amendments, Etc. The Trustee
-------------------------------
shall be entitled to receive, and shall be fully protected in relying upon an
Officers' Certificate and an
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Opinion of Counsel stating that the execution of any amendment, supplement or
waiver authorized pursuant to this Article Nine is authorized and permitted by
this Indenture (and otherwise in form and substance satisfactory to the
Trustee). Subject to the preceding sentence, the Trustee shall sign such
amendment, supplement or waiver if the same does not adversely affect the
rights, duties, liabilities or immunities of the Trustee. The Trustee may, but
shall not be obligated to, execute any such amendment, supplement or waiver that
affects the Trustee's own rights, duties or immunities under this Indenture or
otherwise.
SECTION 9.06. Conformity with Trust Indenture Act. Every
-----------------------------------
supplemental indenture executed pursuant to this Article Nine shall conform to
the requirement of the TIA as then in effect.
ARTICLE TEN
MISCELLANEOUS
SECTION 10.01. Trust Indenture Act of 1939. Prior to the
---------------------------
effectiveness of the Registration Statement, this Indenture shall incorporate
and be governed by the provisions of the TIA that are required to be part of and
to govern indentures qualified under the TIA. After the effectiveness of the
Registration Statement, this Indenture shall be subject to the provisions of the
TIA that are required to be a part of this Indenture and shall, to the extent
applicable, be governed by such provisions.
SECTION 10.02. Notices: Any notice or communication shall be
-------
sufficiently given if in writing and delivered in person or mailed by first
class mail addressed as follows:
if to the Company or any Guarantor:
Sola International Inc.
▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇
▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Telecopier No.: (▇▇▇) ▇▇▇-▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇▇▇▇
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if to the Trustee Paying Agent or Registrar:
The Bank of New York
Corporate Trust Department
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Telecopier No.: (▇▇▇) ▇▇▇-▇▇▇▇
Attention: Corporate Trust Trustee Administration
The Company or the Trustee by notice to the other may
designate additional or different addresses for subsequent notices or
communications.
Any notice or communication mailed to a Holder shall be mailed
to him at his address as it appears on the Register by first class mail and
shall be sufficiently given to him if so mailed within the time prescribed.
Copies of any such communication or notice to a Holder shall also be mailed to
the Trustee and each Agent at the same time.
All notices shall be deemed to have been given upon (1) the
mailing by first class mail, postage prepaid, of such notices to Holders of the
Notes at their registered addresses as recorded in the register; and (2) so long
as the Notes are listed on the Luxembourg Stock Exchange and it is required by
the rules of the Luxembourg Stock Exchange, the Company shall make publication
of such notice to the Holders of the Notes in a leading newspaper having general
circulation in Luxembourg (which is expected to be the Luxemberger Wort) or, if
such publication is not practicable, in one other leading daily newspaper with
general circulation in Europe, such newspaper being published on each business
day in morning editions, whether or not it shall be published in Saturday,
Sunday or holiday editions. For so long as the Notes are listed on the
Luxembourg Stock Exchange, a copy of all notices shall be provided by the
Company to the Luxembourg Stock Exchange.
Failure to mail a notice or communication to a Holder or any
defect in it shall not affect its sufficiency with respect to other Holders.
Except for a notice to the Trustee, which is deemed given only when received,
and except as otherwise provided in this Indenture, if a notice or communication
is mailed in the manner provided in this Section 10.02, it is duly given,
whether or not the addressee receives it.
Where this Indenture provides for notice in any manner, such
notice may be waived in writing by the Person entitled to receive such notice,
either before or after the event, and such waiver shall be the equivalent of
such notice. Waivers of notice by Holders shall be filed with the Trustee, but
such filing shall not be a condition precedent to the validity of any action
taken in reliance upon such waiver.
In case by reason of the suspension of regular mail service or
by reason of any other cause it shall be impracticable to give such notice by
mail, then such notification as shall
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be made with the approval of the Trustee shall constitute a sufficient
notification for every purpose hereunder.
SECTION 10.03. Certificate and Opinion as to Conditions Precedent.
--------------------------------------------------
Upon any request or application by the Company to the Trustee to take any action
under this Indenture, the Company shall furnish to the Trustee:
(i) an Officers' Certificate, upon which the Trustee may
conclusively rely, stating that, in the opinion of the signers, all
conditions precedent, if any, provided for in this Indenture relating to
the proposed action have been complied with; and
(ii) an Opinion of Counsel, upon which the Trustee may conclusively
rely, in form and substance satisfactory to the Trustee stating that, in
the opinion of such counsel, all such conditions precedent have been
complied with; provided, however, that, with respect to matters of fact, an
Opinion of Counsel may rely on an Officers' Certificate or certificates of
public officials.
SECTION 10.04. Statements Required in Certificate. Each Officers'
----------------------------------
Certificate with respect to compliance with a condition or covenant provided for
in this Indenture shall include:
(i) a statement that each person signing such certificate has read
such covenant or condition and the definitions herein relating thereto;
(ii) a brief statement as to the nature and scope of the examination
or investigation upon which the statements contained in such certificate
are based;
(iii) a statement that, in the opinion of each such person, he has
made such examination or investigation as is necessary to enable him to
express an informed opinion as to whether or not such covenant or condition
has been complied with; and
(iv) a statement as to whether or not, in the opinion of each such
person, such condition or covenant has been complied with.
SECTION 10.05. Rules by Trustee, Paying Agent or Registrar. The
-------------------------------------------
Trustee may make reasonable rules for action by or at a meeting of Holders. The
Paying Agent or Registrar may make reasonable rules for its functions.
SECTION 10.06. Payment Date Other Than a Business Day. If an Interest
--------------------------------------
Payment Date, Redemption Date, Stated Maturity or date of maturity or repurchase
of any Note or any other payment date shall not be a Business Day, then payment
of principal of, premium, if any, or interest on such Note, as the case may be,
need not be made on such date, but may be made on the next succeeding Business
Day with the same force and effect as if
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made on the Interest Payment Date or Redemption Date, or at the Stated Maturity
or date of maturity or repurchase of such Note; provided that no interest shall
accrue for the period from and after such Interest Payment Date, Redemption
Date, Stated Maturity or date of maturity or repurchase, as the case may be.
SECTION 10.07. Governing Law. The laws of the State of New York shall
-------------
govern this Indenture, the Notes and each Guarantee. The Trustee, the Company
and any Guarantor agree to submit to the jurisdiction of any federal or state
court situated in the State of New York, the City of New York, the Borough of
Manhattan in any action or proceeding arising out of or relating to this
Indenture, the Notes and each Guarantee. The Company hereby irrevocably submits
to the non-exclusive jurisdiction of each such court for the purpose of any such
action or proceeding. The Company irrevocably waives, to the fullest extent it
may effectively do so, any objection to the laying of venue of any such action
or proceeding in any such court and the defense of inconvenient forum to the
maintenance of any such action or proceeding in any such court.
SECTION 10.08. No Adverse Interpretation of Other Agreements. This
---------------------------------------------
Indenture may not be used to interpret another indenture, loan or debt agreement
of the Company. Any such indenture, loan or debt agreement may not be used to
interpret this Indenture.
SECTION 10.09. No Recourse Against Others. No recourse for the payment
--------------------------
of the principal of, premium, if any, or interest on any of the Notes, or for
any claim based thereon or otherwise in respect thereof, and no recourse under
or upon any obligation, covenant or agreement of the Company or any Guarantor
contained in this Indenture or in any of the Notes, or because of the creation
of any Indebtedness represented thereby, shall be had against any incorporator
or against any past, present or future partner, shareholder, other equityholder,
officer, director, employee, management board member, supervisory board member
or controlling person, as such, of the Company or any Guarantor or of any
successor Person, either directly or through the Company, any Guarantor or any
successor Person, whether by virtue of any constitution, statute or rule of law,
or by the enforcement of any assessment or penalty or otherwise; it being
expressly understood that all such liability is hereby expressly waived and
released as a condition of, and as a consideration for, the execution of this
Indenture and the issue of the Notes.
SECTION 10.10. Successors. All agreements of the Company and any
----------
Guarantor in this Indenture and the Notes shall bind their respective
successors. All agreements of the Trustee of this Indenture shall bind its
successor.
SECTION 10.11. Duplicate Originals. The parties may sign any number of
-------------------
copies of this Indenture. Each signed copy shall be an original, but all of them
together represent the same agreement.
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SECTION 10.12. Separability. In case any provision in this Indenture,
------------
in any Guarantee or in the Notes shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.
SECTION 10.13. Table of Contents, Headings, etc. The Table of
-------------------------------
Contents, Cross-Reference Table and headings of the Articles and Sections of
this Indenture have been inserted for convenience of reference only, are not to
be considered a part hereof and shall in no way modify or restrict any of the
terms and provisions hereof.
SECTION 10.14. Judgment Currency. The Company and any Guarantor agree,
-----------------
jointly and severally, to indemnify the Holders and each person, if any, who
controls any Holder within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act against any loss incurred, as incurred, as a
result of any judgment or award in connection with this Indenture being
expressed in a currency (the "Judgment Currency") other than Euro and as a
-----------------
result of any variation as between (i) the spot rate of exchange in London at
which the Judgment Currency could have been converted into Euro as of the date
such judgment or award is paid and (ii) the spot rate of exchange at which the
indemnified party converts such Judgment Currency. The foregoing indemnity shall
constitute a separate and independent obligation of the Company and any
Guarantors and shall continue in full force and effect notwithstanding any such
judgment or order as aforesaid. The term "spot rate of exchange" shall include
any premiums and costs of exchange payable in connection with the purchase of,
or conversion into, the relevant currency.
SECTION 10.15. Waiver of Jury Trial. Each of the Company, any
--------------------
Guarantors, Trustee, Paying Agent, and Registrar hereby irrevocably waives, to
the fullest extent permitted by applicable law, any and all right to trial by
jury in any legal proceeding arising out of or relating to this Indenture, the
Notes, any Guarantee or the transactions contemplated hereby.
SECTION 10.16. Unclaimed Money; Prescription. If money deposited with
-----------------------------
the Trustee or any Paying Agent for the payment of principal, premium (if any),
interest or Liquidated Damages (if any) remains unclaimed for two years, the
Trustee and such Paying Agent shall, upon written request of the Company, pay
such money back to the Company. Following such repayment to the Company, Holders
of the Notes entitled to such payment must look to the Company for such payment
unless applicable abandoned property law designates another Person and all
liability of the Trustee and Paying Agent shall cease. Other than as set forth
in this paragraph, this Indenture does not provide for any prescription period
for the payment of principal, premium (if any), interest and Liquidated Damages
(if any) on the Notes.
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ARTICLE ELEVEN
GUARANTEE OF NOTES
SECTION 11.01. Guarantee. Each Guarantor hereby unconditionally
---------
guarantee, as a primary obligor and not merely a surety, on an unsecured senior
basis, to each Holder of a Note authenticated and delivered by a Trustee and to
the Trustee and their successors, irrespective of the validity and
enforceability of this Indenture, the Notes or the obligations of the Company to
the Holders or the Trustee hereunder or thereunder, that: (a) the principal of,
premium, if any, and interest on the Notes (and any Liquidated Damages payable
thereon) will be duly and punctually paid in full when due, whether at maturity,
by acceleration or otherwise, and interest on the overdue principal and (to the
extent permitted by law) interest, Liquidated Damages, if any, on the Notes and
all other obligations of the Company to the Holders or the Trustee hereunder
(including amounts due the Trustee under Section 7.07 hereof) and all other
obligations under this Indenture (the "Indenture Obligations") will be promptly
---------------------
paid in full or performed, all in accordance with the terms hereof and thereof;
and (b) in case of any extension of time of payment or renewal of any Notes or
any of such other Indenture Obligations, the same will be promptly paid in full
when due or performed in accordance with the terms of the extension or renewal,
whether at the maturity date of the Notes, by acceleration or otherwise. An
Event of Default under this Indenture or the Notes shall constitute an event of
default under any Guarantee, and shall entitle the Holders of Notes to
accelerate the obligations of each Guarantor hereunder in the same manner and to
the same extent as the obligations of the Company.
Each Guarantor hereby agrees that its obligations hereunder shall be
unconditional, irrespective of the validity, regularity or enforceability of the
Notes or this Indenture, the absence of any action to enforce the same, any
waiver or consent by any Holder of the Notes with respect to any provisions
hereof or thereof, any release of any other guarantor, the recovery of any
judgment against the Company, any action to enforce the same, whether or not its
Guarantee is affixed to any particular Note, or any other circumstance which
might otherwise constitute a legal or equitable discharge or defense of each
Guarantor. Each Guarantor hereby waives the benefit of diligence, presentment,
demand of payment, filing of claims with a court in the event of insolvency or
bankruptcy of the Company, any right to require a proceeding first against the
Company, protest, notice and all demands whatsoever and covenants that its
Guarantee will not be discharged except by complete performance of the
obligations contained in the Notes, this Indenture and its Guarantee. Any
Guarantee is a guarantee of payment and not of collection. If any Holder or the
Trustee is required by any court or otherwise to return to the Company or to any
Guarantor, or any custodian, trustee, liquidator or other similar official
acting in relation to the Company or any Guarantor, any amount paid by the
Company or such Guarantor to the Trustee or such Holder, each Guarantee, to the
extent theretofore discharged, shall be reinstated in full force and effect.
Each Guarantor fur-
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ther agrees that, as between it, on the one hand, and the Holders of Notes and
the Trustee, on the other hand, (a) the maturity of the obligations guaranteed
hereby may be accelerated as provided in Article Six hereof for the purposes of
each Guarantee, notwithstanding any stay, injunction or other prohibition
preventing such acceleration in respect of the obligations guaranteed hereby,
and (b) in the event of any acceleration of such obligations as provided in
Article Six hereof, such obligations (whether or not due and payable) shall
forthwith become due and payable by each Guarantor for the purpose of its
Guarantee.
SECTION 11.02. Execution and Delivery of Guarantee. Guarantees,
-----------------------------------
substantially in the form included in Exhibit E of this Indenture, shall be
---------
executed by either manual or facsimile signature of an Officer of each
Guarantor. The validity and enforceability of each Guarantee shall not be
affected by the fact that it is not affixed to any particular Note.
Guarantees set forth in Section 11.01 shall remain in full force and
effect notwithstanding any failure to endorse on each Note a notation of such
Guarantee.
If an Officer of a Guarantor whose signature is on this Indenture or a
Guarantee no longer holds that office at the time a Trustee authenticates the
Note on which such Guarantee is endorsed or at any time thereafter, such
Guarantor's Guarantee of such Note shall be valid nevertheless.
The delivery of any Note by a Trustee, after the authentication
thereof hereunder, shall constitute due delivery of each Guarantee set forth in
this Indenture on behalf of its respective Guarantor.
SECTION 11.03. Waiver of Subrogation. Each Guarantor hereby
---------------------
irrevocably waives and agrees not to exercise any claim or other rights which it
may now or hereafter acquire against the Company or any other Restricted
Subsidiary that arise from the existence, payment, performance or enforcement of
the Company's obligations under the Notes or this Indenture and such Guarantor's
obligations under its Guarantee and this Indenture, in any such instance
including, without limitation, any right of subrogation, reimbursement,
exoneration, contribution, indemnification, and any right to participate in any
claim or remedy of the Holders and the Trustee against the Company or any other
Restricted Subsidiary, whether or not such claim, remedy or right arises in
equity, or under contract, statute or common law, including, without limitation,
the right to take or receive from the Company or any other Restricted
Subsidiary, directly or indirectly, in cash or other property or by set-off or
in any other manner, payment or security on account of such claim or other
rights. If any amount shall be paid to any Guarantor in violation of the
preceding sentence and any amounts owing to the Trustee or the Holders of Notes
under the Notes, this Indenture, or any other document or instrument delivered
under or in connection with such agreements or instruments, shall not have been
paid in full, such amount shall have been deemed to have been paid to such
Guarantor for the benefit of, and held in trust for the benefit of, the Holders
and the Trustee and shall forthwith be paid to the Trustee for the benefit of
such Holders to be credited and applied to
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the obligations in favor of the Holders and the Trustee, whether matured or
unmatured, in accordance with the terms of this Indenture. Each Guarantor
acknowledges that it will receive direct and indirect benefits from the
financing arrangements contemplated by this Indenture and that the waiver set
forth in this Section 11.03 is knowingly made in contemplation of such benefits.
SECTION 11.04. Immediate Payment. Each Guarantor shall make immediate
-----------------
payment to the Trustee on behalf of the Holders and the Trustee of all
obligations with respect to its Guarantee owing or payable to the respective
Holders upon receipt of a demand for payment therefor by the Trustee to such
Guarantor in writing.
SECTION 11.05. No Set-Off. Each payment to be made by any Guarantor
----------
hereunder in respect of any obligations with respect to its Guarantee shall be
payable in the currency or currencies in which such obligations are denominated,
and shall be made without set-off, counterclaim, reduction or diminution of any
kind or nature.
SECTION 11.06. Obligations Absolute. The obligations of each Guarantor
--------------------
hereunder are and shall be absolute and unconditional and any monies or amounts
expressed to be owing or payable by such Guarantor hereunder which may not be
recoverable from such Guarantor on the basis of a Guarantee shall be recoverable
from such Guarantor as a primary obligor and principal debtor in respect
thereof.
SECTION 11.07. Obligations Continuing. The obligations of each
----------------------
Guarantor hereunder shall be continuing and shall remain in full force and
effect until all of the obligations with respect thereto have been paid and
satisfied in full. Each Guarantor agrees with the Trustee that it will from time
to time deliver to the Trustee suitable acknowledgments of this continued
liability hereunder and under any other instrument or instruments in such form
as counsel to the Trustee may advise and as will prevent any action brought
against it in respect of any default hereunder being barred by any statute of
limitations now or hereafter in force in the jurisdiction of incorporation or
organization of such Guarantor or elsewhere and, in the event of the failure of
such Guarantor so to do, it hereby irrevocably appoints the Trustee and each of
them the attorneys and agents of such Guarantor to make, execute and deliver
such written acknowledgment or acknowledgments or other instruments as may from
time to time become necessary or advisable, in the judgment of the Trustee on
the advice of counsel, to fully maintain and keep in force the liability of such
Guarantor hereunder.
SECTION 11.08. Obligations Not Reduced. The obligations of each
-----------------------
Guarantor hereunder shall not be satisfied, reduced or discharged by any
intermediate payment or satisfaction of the whole or any part of the principal,
interest, fees and other monies or amounts which may at any time be or become
owing or payable under or by virtue of or otherwise in connection with the Notes
or this Indenture.
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SECTION 11.09. Obligations Reinstated. The obligations of each
----------------------
Guarantor hereunder shall continue to be effective or shall be reinstated, as
the case may be, if at any time any payment which would otherwise have reduced
the obligations of each Guarantor hereunder (whether such payment shall have
been made by or on behalf of the Company or by or on behalf of such Guarantor)
is rescinded or reclaimed from any of the Holders and the Trustee upon the
insolvency, bankruptcy, liquidation or reorganization of the Company or such
Guarantor or otherwise, all as though such payment had not been made. If demand
for, or acceleration of the time for, payment by the Company is stayed upon the
insolvency, bankruptcy, liquidation or reorganization of the Company, all such
indebtedness otherwise subject to demand for payment or acceleration shall
nonetheless be payable by each Guarantor as provided herein.
SECTION 11.10. Obligations Not Affected. The obligations of each
------------------------
Guarantor hereunder shall not be affected, impaired or diminished in any way by
any act, omission, matter or thing whatsoever, occurring before, upon or after
any demand for payment hereunder (and whether or not known or consented to by
such Guarantor or any of the Holders and the Trustee) which, but for this
provision, might constitute a whole or partial defense to a claim against each
Guarantor hereunder or might operate to release or otherwise exonerate such
Guarantor from any of its obligations hereunder or otherwise affect such
obligations, whether occasioned by default of any of the Holders and the Trustee
or otherwise, including, without limitation:
(i) any limitation of status or power, disability, incapacity or
other circumstance relating to the Company or any other person, including
any insolvency, bankruptcy, liquidation, reorganization, readjustment,
composition, dissolution, winding-up or other proceeding involving or
affecting the Company or any other person;
(ii) any irregularity, defect, unenforceability or invalidity in
respect of any Indebtedness or other obligation of the Company or any other
person under this Indenture, the Notes or any other document or instrument;
(iii) any failure of the Company, whether or not without fault on its
part, to perform or comply with any of the provisions of this Indenture or
the Notes, or to give notice thereof to any Guarantor;
(iv) the taking or enforcing or exercising or the refusal or neglect
to take or enforce or exercise any right or remedy from or against the
Company or any other Person or their respective assets or the release or
discharge of any such right or remedy;
(v) the granting of time, renewals, extensions, compromises,
concessions, waivers, releases, discharges and other indulgences to the
Company or any other person;
-105-
(vi) any change in the time, manner or place of payment of, or in
any other term of, any of the Notes, or any other amendment, variation,
supplement, replacement or waiver of, or any consent to departure from, any
of the Notes or this Indenture, including, without limitation, any increase
or decrease in the principal amount of or premium, if any, or interest on
any of the Notes;
(vii) any change in the ownership, control, name, objects,
businesses, assets, capital structure or constitution of the Company or any
Guarantor;
(viii) any merger or amalgamation of the Company or any Guarantor with
any Person or Persons;
(ix) the occurrence of any change in the laws, rules, regulations or
ordinances of any jurisdiction by any present or future action of any
governmental authority or court amending, varying, reducing or otherwise
affecting, or purporting to amend, vary, reduce or otherwise affect, any of
the obligations of any Guarantor under its Guarantee; and
(x) any other circumstance (other than by complete, irrevocable
payment) that might otherwise constitute a legal or equitable discharge or
defense of the Company under this Indenture or the Notes or of any
Guarantor in respect of its guarantee hereunder.
SECTION 11.11. Waiver. Without in any way limiting the provisions of
------
Section 11.01 of this Indenture, each Guarantor hereby waives notice of
acceptance hereof, notice of any liability of such Guarantor hereunder, notice
or proof of reliance by the Holders and the Trustee upon the obligations of such
Guarantor hereunder, and diligence, presentment, demand for payment on the
Company, protest, notice of dishonor or non-payment of any of the obligations
under its Guarantee, or other notice or formalities to the Company or such
Guarantor of any kind whatsoever.
SECTION 11.12. No Obligation to Take Action Against Company. Neither
--------------------------------------------
the Trustee nor any of the Holders shall have any obligation to enforce or
exhaust any rights or remedies or to take any other steps under any security for
the obligations under any Guarantee or against the Company or any other person
or any property of the Company or any other person before the Trustee is
entitled to demand payment and performance by any Guarantor of its liabilities
and obligations under its Guarantee, and each Guarantor hereby waives all
benefit of discussion.
SECTION 11.13. Default and Enforcement. (a) If any Guarantor fails to
-----------------------
pay in accordance with Section 11.01 hereof, the Trustee may proceed in its name
as trustee hereunder in the enforcement of such Guarantee and such Guarantor's
obligations thereunder and hereunder by any remedy provided by law, whether by
legal proceedings or otherwise,
-106-
and to recover from any Guarantor the obligations of such Guarantor with respect
to its Guarantee.
(b) No Holder shall have the right to institute any suit, action or
proceeding against any Guarantor for any default hereunder except in the manner
and subject to the conditions set forth in Article Six of this Indenture, it
being understood and intended that no one or more Holders shall have any right
in any manner whatsoever to enforce any right hereunder by his or their action
except as aforesaid and that all powers and trusts hereunder shall be exercised
and all proceedings at law or in equity shall be instituted, had and maintained
by the Trustee, only as aforesaid and in any event for the benefit of all
Holders as provided in this Indenture.
SECTION 11.14. Costs and Expenses. Each Guarantor shall pay on demand
------------------
by the Trustee any and all costs, fees and expenses (including, without
limitation, the fees and the expenses of its counsel) incurred by the Trustee or
any of the Holders in enforcing any of their rights under its Guarantee.
SECTION 11.15. No Merger or Waiver; Cumulative Remedies. No Guarantee
----------------------------------------
shall operate by way of merger of any of the obligations of any Guarantor under
any other agreement, including, without limitation, this Indenture. No failure
to exercise and no delay in exercising, on the part of the Trustee or the
Holders, any right, remedy, power or privilege hereunder or under this Indenture
or the Notes, shall operate as a waiver thereof; nor shall any single or partial
exercise of any right, remedy, power or privilege hereunder or under this
Indenture or the Notes preclude any other or further exercise thereof or the
exercise of any other right, remedy, power or privilege. The rights, remedies,
powers and privileges herein and under this Indenture, the Notes and any other
document or instrument between any Guarantor and/or the Company and the Trustee,
are cumulative and not exclusive of any rights, remedies, powers and privilege
provided by law.
SECTION 11.16. Survival of Obligations. Without prejudice to the
-----------------------
survival of any of the other obligations of any Guarantor hereunder, the
obligations of each Guarantor under Section 11.01 shall survive the payment in
full of any obligations with respect to its Guarantee and shall be enforceable
against each Guarantor without regard to and without giving effect to any
defense, right of offset or counterclaim available to or which may be asserted
by the Company or any Guarantor.
SECTION 11.17. Guarantee in Addition to Other Obligations. The
------------------------------------------
obligations of each Guarantor under its Guarantee and this Indenture are in
addition to and not in substitution for any other obligations to the Trustee or
to any of the Holders in relation to this Indenture or the Notes and any
guarantees or security at any time held by or for the benefit of any of them.
-107-
SECTION 11.18. Successors and Assigns. Each Guarantee shall be binding
----------------------
upon and inure to the benefit of each Guarantor and the Trustee and the other
Holders and their respective successors and permitted assigns, except that no
Guarantor may assign any of its obligations hereunder except in accordance with
the provisions of Section 9.01 or Section 9.02 of this Indenture, as applicable.
SECTION 11.19. Governing Law; Agent for Service; Submission to
-----------------------------------------------
Jurisdiction; Waiver of Immunities; Judgment Currency. Each Guarantor hereby
-----------------------------------------------------
acknowledges and agrees to comply with and be bound by Section 10.07, Section
10.15 and Section 10.16 of this Indenture on the same terms as the Company and
as if the term "Guarantor" had therein been substituted for the term "Company."
SECTION 11.20. Release of Guarantee. In the event of a sale or other
--------------------
disposition of all of the assets of any Guarantor, by way of merger,
consolidation or otherwise, or a sale or other disposition of all of the Capital
Stock of any Guarantor then held by the Company and the Restricted Subsidiaries,
then that Guarantor will be released and relieved of any obligations under its
Note Guarantee; provided that the Net Available Proceeds of such sale or other
disposition are applied in accordance with Section 4.11, to the extent required
thereby. In addition, any Guarantor that is Designated as an Unrestricted
Subsidiary or that otherwise ceases to be a Guarantor, in each case in
accordance with the provisions of this Indenture, will be released from its Note
Guarantee upon effectiveness of such Designation or when it first ceases to be a
Restricted Subsidiary, as the case may be.
[Signature Pages Follow]
-108-
SIGNATURES
IN WITNESS WHEREOF, the parties hereto have caused this Indenture to
be duly executed, all as of the date first written above.
SOLA INTERNATIONAL INC.,
as the Company
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇
------------------------------------
Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇
Title: Executive Vice President
THE BANK OF NEW YORK, as Trustee,
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇
------------------------------------
Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Title: Assistant Vice President
-109-
EXHIBIT A
---------
{FACE OF NOTE}
[Insert Private Placement Legend and Global Notes if Applicable]
SOLA INTERNATIONAL INC.
11% Senior Note Due 2008
(euro)205,000,000
ISIN No.[_]
Common Code[_]
No.[_]
SOLA INTERNATIONAL INC., a Delaware corporation (the "Company", which
-------
term includes any successor under the Indenture hereinafter referred to), for
value received, promise to pay to _______________, or its registered assigns,
the principal sum of Euro (euro) 205,000,000 on March 15, 2008.
Interest Payment Dates: September 15 and March 15 commencing September
15, 2001.
Regular Record Dates: September 1 and March 1.
Reference is hereby made to the further provisions of this Note set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.
A-1
IN WITNESS WHEREOF, the Company has caused this Note to be signed
manually by its duly authorized signatories.
SOLA INTERNATIONAL INC.
By: ____________________________________
Name:
Title:
(Trustee's Certificate of Authentication)
This is one of the 11% Senior Notes due 2008 described in the within-
mentioned Indenture.
Date: April 17, ▇▇▇▇
▇▇▇ ▇▇▇▇ ▇▇ ▇▇▇ ▇▇▇▇, as Trustee
By: ____________________________________
Name:
Title:
A-2
{REVERSE SIDE OF NOTE}
SOLA INTERNATIONAL INC.
11% Senior Note due 2008
1. Principal and Interest.
----------------------
The Company shall pay the principal of this Note on March 15, 2008.
The Company promises to pay interest on the principal amount of this
Note on each Interest Payment Date, as set forth below, at the rate per annum
shown above.
Interest will be paid semiannually in arrears on each Interest Payment
Date, commencing September 15, 2001. Interest on this Note will accrue from the
latest date to which interest has been paid on the Notes or, if no interest has
been paid, the Issue Date; provided, however, that, if the Exchange Offer is
consummated and Unrestricted Notes are issued in exchange for this Note in
connection therewith, any accrued and unpaid interest on this Note shall be
deemed to have accrued with respect to, and shall be paid with respect to, such
Unrestricted Notes. Interest will be computed on the basis of a 360-day year of
twelve 30-day months.
The Company shall pay interest on overdue principal and premium, if
any, and interest on overdue installments of interest, to the extent lawful, at
a rate per annum that is the then applicable interest rate borne by the Notes.
2. Method of Payment.
-----------------
The Company shall pay interest on the principal amount of the Notes on
each September 15 and March 15 to the persons who are Holders of the relevant
Notes on the September 1 or March 1, as the case may be, immediately preceding
such Interest Payment Date (as reflected in the Register at the close of
business on the Regular Record Date), in each case, even if the Note is canceled
on registration of transfer or registration of exchange after such record date.
The Company shall make payments of principal on the Notes to Holders that
surrender Notes to the Paying Agent.
If a Holder has given wire transfer instructions to the Paying Agent
at least 15 days prior to any payment, the Company shall make all principal,
premium and interest and Liquidated Damages, if any, payments on the Notes owned
by such Holder in accordance with those instructions. All other payments on the
Notes shall be made by check mailed to the Holders at their address set forth in
the register of Holders, or in the case of the final payment of principal and
interest, if any, on any Note, upon presentation and surrender of such Note at
the office of the Paying Agent. All payments on the Notes will be made in Euros.
A-3
3. Paying Agent and Registrar.
--------------------------
Initially, the Company has appointed the corporate trust office of the
Trustee in The City of New York located at the address set forth in Section
10.02 of the Indenture as Paying Agent in The City of New York. So long as the
Notes are listed on the Luxembourg Stock Exchange and the rules of such stock
exchange so require, the Company shall maintain a Paying Agent and Transfer
Agent in Luxembourg.
4. Indenture; Limitations.
----------------------
The Company issued the Notes under an Indenture dated as of April 17,
2001 (the "Indenture"), among the Company and The Bank of New York, as trustee
---------
(the "Trustee"). Capitalized terms herein are used as defined in the Indenture
-------
unless otherwise indicated. This Note is one of a duly authorized issue of Notes
of the Company designated as its 11% Senior Notes due 2008 (the "Initial
-------
Notes"). The Initial Notes are initially being issued in the aggregate principal
-----
amount of (euro)205,000,000. The Company shall be entitled to issue Additional
Notes pursuant to Section 2.14 of the Indenture (the "Additional Notes"). The
Notes include the Unrestricted Notes (as defined below) issued in exchange for
the Initial Notes pursuant to the Registration Rights Agreement. The Initial
Notes, the Additional Notes and the Unrestricted Notes are treated as a single
class of securities under the Indenture. The terms of the Notes include those
stated in the Indenture and those made part of the Indenture by reference to the
Trust Indenture Act. The Notes are subject to all such terms, and Holders are
referred to the Indenture and the Trust Indenture Act for a statement of all
such terms. To the extent permitted by applicable law, in the event of any
inconsistency between the terms of this Note and the terms of the Indenture, the
terms of the Indenture shall control. This is one of the Notes referred to in
the Indenture. The Notes are unsecured and unsubordinated obligations of the
Company.
5. Redemption.
----------
(a) Except as set forth below, the Notes may not be redeemed prior to
March 15, 2005.
The Notes will be redeemable, in whole or in part, at the Company's
option, at any time, on or after March 15, 2005 at the redemption prices
(expressed in percentages of principal amount) set forth below, plus accrued and
unpaid interest and Liquidated Damages, if any, to the redemption date if
redeemed during the 12-month period beginning on March 15 of the years indicated
below:
Year Percentage
---- ----------
2005.............................. 105.50%
2006.............................. 102.75%
2007 and thereafter............... 100.00%
A-4
(b) In addition, at any time, or from time to time, on or
prior to , 2004, the Company may, at its option, use the Net Proceeds of
one or more Public Equity Offerings (as defined below) to redeem up to 35% of
the Notes at a redemption price equal to 111% of the principal amount thereof
plus accrued and unpaid interest and Liquidated Damages, if any, to the
redemption date; provided that at least 65% of the aggregate principal amount of
Notes originally issued (including the original principal amount of Additional
Notes) remains outstanding immediately after any such redemption (it being
expressly agreed that for purposes of determining whether this condition is
satisfied, Notes owned by the Company or any of its Affiliates shall be deemed
not to be outstanding). In order to effect the foregoing redemption with the
proceeds of any Public Equity Offering, the Company shall make such redemption
not more than 120 days after receipt of the proceeds of any such Public Equity
Offering.
For purposes of this Section 6, the following terms shall be
defined as set forth below:
"Public Equity Offering" means an underwritten public offering
----------------------
of Qualified Capital Stock of the Company generating gross proceeds of at least
$50.0 million pursuant to an effective registration statement filed under the
Securities Act.
Notice of any optional redemption will be mailed at least 30
days but not more than 60 days before the redemption date to each Holder of
Notes to be redeemed at its last address as it appears in the Register. So long
as the Notes are listed on the Luxembourg Stock Exchange and the rules of such
exchange so require, notice of redemption shall be published in a daily
newspaper of general circulation in Luxembourg (which is expected to be the
Luxemberger Wort). On and after the Redemption Date, interest ceases to accrue
on Notes or portions of Notes called for redemption so long as the Company has
deposited with the Paying Agent funds in satisfaction of the Redemption Price
pursuant to the terms of the Indenture, unless the Company defaults in the
payment of the Redemption Price. The Trustee may select for redemption portions
of the principal amount of the Notes that have denominations equal to
(euro)1,000 integral multiples thereof in accordance with Section 3.03 of the
Indenture.
6. Redemption for Changes in Withholding Taxes.
-------------------------------------------
The Company may redeem the Notes, in whole, but not in part,
at a price equal to 100% of the principal amount thereof, plus accrued and
unpaid interest and Liquidated Damages, if any, in the event of certain changes
in the applicable tax laws or treaties.
7. Repurchase upon Change in Control.
---------------------------------
Upon the occurrence of a Change of Control, each Holder shall
have the right to require the Company to repurchase its Notes in cash pursuant
to the offer described in the
A-5
Indenture at a purchase price equal to 101% of the principal amount thereof,
plus accrued and unpaid interest, and Liquidated Damages, if any, to the date of
purchase (the "Change of Control Payment").
-------------------------
A notice of such Change of Control will be mailed within 30
days after any Change of Control occurs to each Holder at its last address as it
appears in the Register and to the Trustee. On and after the Change of Control
Payment Date, interest ceases to accrue on Notes or portions of Notes
surrendered for purchase by the Company, unless the Company defaults in the
payment of the Change of Control Payment.
8. Denominations; Transfer; Exchange.
---------------------------------
The Notes are in registered form without coupons in
denominations of (euro)1,000 principal amount and multiples of (euro)1,000 in
excess thereof. A Holder may register the transfer or exchange of Notes in
accordance with the Indenture. The Registrar may require a Holder, among other
things, to furnish appropriate endorsements and transfer documents and to pay
any taxes and fees required by law or permitted by the Indenture.
9. Persons Deemed Owners.
---------------------
A Holder shall be treated as the owner of a Note for all
purposes.
10. Unclaimed Money.
---------------
If money deposited with the Trustee or any Paying Agent for
the payment of principal, premium (if any), interest or Liquidated Damages (if
any) remains unclaimed for two years, the Trustee and each such Paying Agent
shall pay such money back to the Company upon written request of the Company.
Following such repayment to the Company, Holders of the Notes entitled to such
payment must look to the Company for such payment unless applicable abandoned
property law designates another Person and all liability of the Trustee and such
Paying Agent shall cease. Other than as set forth in this paragraph, the
Indenture does not provide for any prescription period for the payment of
principal, premium (if any), interest and Liquidated Damages (if any) on the
Notes.
11. Discharge Prior to Redemption or Maturity.
-----------------------------------------
If the Company deposits with the Trustee money or Government
Obligations sufficient to pay the then outstanding principal of and accrued
interest on the Notes to redemption or maturity, the Company and each Guarantor,
if any, will be discharged from the Indenture, the Notes and any Guarantees
except in certain circumstances set forth in the Indenture.
A-6
12. Legal Defeasance and Covenant Defeasance.
----------------------------------------
The Company and each Guarantor may be discharged from their
obligations under the Indenture, the Notes and the Guarantees, if any, except
for certain provisions thereof, and the Company may be discharged from its
obligations to comply with certain covenants contained therein, in each case
upon satisfaction of certain conditions specified in the Indenture.
13. Amendment; Supplement; Waiver.
-----------------------------
Subject to certain exceptions, the Indenture, the Notes and
each Guarantee, if any, may be amended or supplemented with the consent of the
Holders of at least a majority in principal amount of the Notes then
outstanding, and any existing default or compliance with any provision may be
waived with the consent of the Holders of at least a majority in principal
amount of the Notes then outstanding. Without notice to or the consent of any
Holder, the parties thereto may amend or supplement the Indenture, the Notes and
each Guarantee, if any, to, among other things, cure any ambiguity, defect or
inconsistency provided that such action does not adversely affect the rights or
interests of the Holders in any material respect. Certain modifications will
require the consent of each Holder affected thereby.
14. Restrictive Covenants.
---------------------
The Indenture imposes certain limitations on the ability of
the Company and its Restricted Subsidiaries, among other things, to incur
additional Indebtedness, make Restricted Payments, use the proceeds from Asset
Sales, engage in transactions with Affiliates and, in the case of the Company
and any Guarantor, if any, to merge, consolidate or transfer substantially all
of its assets.
15. Successor Persons.
-----------------
When a successor person or other entity assumes all the
obligations of its predecessor under the Notes and the Indenture, the
predecessor person will be released from those obligations.
16. Defaults and Remedies.
---------------------
If an Event of Default (other than an Event of Default
specified in clause (g) or (h) of Section 6.01 of the Indenture that occurs with
respect to the Company) occurs and is continuing, the Trustee by notice to the
Company, or the Holders of at least 25% in aggregate principal amount of the
Notes then outstanding under the Indenture by notice to the Company and the
Trustee, may declare the principal of, premium, if any, and accrued interest, if
any, on all Notes to be due and payable. If an Event of Default specified in
clause (g) or (h) of Section 6.01 occurs and is continuing with respect to the
Company, such amount with respect to
A-7
all the Notes shall, ipso facto, become and be immediately due and payable
without any declaration or other act on the part of the Trustee or any Holders.
Holders may not enforce the Indenture, the Notes or the Guarantee except as
provided in the Indenture. The Trustee may require indemnity satisfactory to it
before it enforces the Indenture, the Notes or any Guarantees. Subject to
certain limitations, Holders of at least a majority in principal amount of the
Notes then outstanding may direct the Trustee in its exercise of any trust or
power.
17. Trustee Dealings with Company.
-----------------------------
Subject to the Trust Indenture Act, the Trustee under the
Indenture, in its individual or any other capacity, may make loans to, accept
deposits from and perform services for the Company or its Affiliates and may
otherwise deal with the Company or its Affiliates as if it were not the Trustee.
18. No Recourse Against Others.
--------------------------
No recourse for the payment of the principal of, premium, if
any, or interest on any of the Notes or any Guarantees, or for any claim based
thereon or otherwise in respect thereof, and no recourse under or upon any
obligation, covenant or agreement of the Company contained in the Indenture, in
any of the Notes or any Guarantees, or because of the creation of any
Indebtedness represented thereby, shall be had against any incorporator or
against any past, present or future partner, shareholder, other equityholder,
officer, director, employee, management board member, supervisory board member
or controlling person, as such, of the Company, any Guarantor or of any
successor Person, either directly or through the Company or any successor
Person, whether by virtue of any constitution, statute or rule of law, or by the
enforcement of any assessment or penalty or otherwise.
19. Authentication.
--------------
This Note shall not be valid until the Trustee or
authenticating agent signs the certificate of authentication on the other side
of this Note.
20. Abbreviations.
-------------
Customary abbreviations may be used in the name of a Holder or
an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the
entireties), JT TEN (= joint tenants with right of survivorship and not as
tenants in common), CUST (= Custodian) and U/G/M/A (= Uniform Gifts to Minors
Act).
The Company shall furnish to any Holder upon written request
and without charge a copy of the Indenture. Requests may be made to Sola
International Inc., ▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇, ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇
▇▇▇▇▇.
A-8
21. Registration Rights.
-------------------
Pursuant to the Registration Rights Agreement, the Company
shall be obligated upon the occurrence of certain events to consummate an
exchange offer pursuant to which the Holder of this Note shall have the right to
exchange this Note for an 11% Senior Note due 2008 of the Company (an
"Unrestricted Note") which has been registered under the Securities Act, in like
-----------------
principal amount and having terms identical in all material respects to the
Initial Notes. The Holders shall be entitled to receive certain Liquidated
Damages in the event such exchange offer is not consummated and upon certain
other conditions, all pursuant to and in accordance with the terms of the
Registration Rights Agreement.
22. Choice of Law.
-------------
The laws of the State of New York shall govern the Indenture
and this Note.
A-9
ASSIGNMENT FORM
I or we assign and transfer this Note to
________________________________________________________________________________
________________________________________________________________________________
(Print or type name, address and zip code of assignee or transferee)
________________________________________________________________________________
(Insert Company Registration, Social Security or other identifying number of
assignee or transferee)
and irrevocably appoint_________________________________________________________
agent to transfer this Security on the books of the Company. The agent may
substitute another to act for him.
Dated:___________________ Signed:__________________________________________
(Sign exactly as name appears
on the other side of this
Note)
Signature Guarantee:____________________________________________________________
Participant in a recognized Signature Guarantee
Medallion Program (or other signature guarantor
program reasonably acceptable to the Trustee)
A-10
OPTION OF HOLDER TO ELECT PURCHASE
If you wish to have this Note purchased by the Company
pursuant to Section 4.11 or Section 4.12 of the Indenture, check the box: [ ]
If you wish to have a portion of this Note purchased by the
Company pursuant to Section 4.11 or Section 4.12 of the Indenture, state the
amount (in principal amount): (euro)_________.
Date: ________________
Your Signature:
________________________________________________________________________________
(Sign exactly as your name appears on the other side of this Note)
Signature Guarantee:____________________________
A-11
SCHEDULE A
SCHEDULE OF PRINCIPAL AMOUNT
OF INDEBTEDNESS EVIDENCED BY THIS NOTE
The initial principal amount of indebtedness evidenced by this
Note shall be (euro)_____. The following decreases/increases in the principal
amount of indebtedness evidenced by this Note have been made:
Total Principal
Decrease in Increase in Amount of Indebt-
Principal Amount Principal Amount edness Evidenced Notation Made
Date of of Indebtedness of Indebtedness Following Such by or on Behalf
Decrease/Increase Evidenced Evidenced Decrease/Increase of Trustee
----------------- ---------------- ------------------ ------------------ ------------------
A-12
EXHIBIT B
FORM OF CERTIFICATE OF TRANSFER
Sola International Inc.
▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇
▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇▇▇▇
The Bank of New York
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: Corporate Trust Administration
Re: 11% Senior Notes due 2008 Sola International Inc.
-------------------------------------------------
Reference is hereby made to the Indenture, dated as of April
17, 2001 (the "Indenture"), among Sola International Inc., as Company (the
---------
"Company") and The Bank of New York, as trustee. Capitalized terms used but not
-------
defined herein shall have the meanings given to them in the Indenture.
___________________ (the "Transferor") owns and proposes to
----------
transfer the Note[s] or interest in such Note[s] specified in Annex A hereto, in
-------
a principal amount of (euro)___________ (the "Transfer"), to
--------
___________________________ (the "Transferee"), as further specified in Annex A
----------
hereto. In connection with the Transfer, the Transferor hereby certifies that:
[CHECK ALL THAT APPLY]
1. [_] Check if Transferee will take delivery of a
beneficial interest in the U.S. Global Note or a Definitive Registered Note
pursuant to Rule 144A. The Transfer is being effected pursuant to and in
accordance with Rule 144A under the United States Securities Act of 1933, as
amended (the "Securities Act"), and, accordingly, the Transferor hereby further
--------------
certifies that the Book-Entry Interest or Definitive Registered Note is being
transferred to a Person that the Transferor reasonably believed and believes is
purchasing the Book-Entry Interest or Definitive Registered Note for its own
account, or for one or more accounts with respect to which such Person exercises
sole investment discretion, and such Person and each such account is a
"qualified institutional buyer" within the meaning of Rule 144A in a transaction
meeting the requirements of Rule 144A and such Transfer is in compliance with
any applicable blue sky securities laws of any state of the United States. Upon
consummation of the proposed Transfer in accordance with the terms of the
Indenture, the trans-
B-1
ferred Book-Entry Interest or Definitive Registered Note will be subject to the
restrictions on transfer enumerated in the Private Placement Legend printed on
the U.S. Global Note and/or the Definitive Registered Note and in the Indenture
and the Securities Act.
2. [_] Check if Transferee will take delivery of a Book-
Entry Interest in the International Global Note or a Definitive Registered Note
pursuant to Regulation S. The Transfer is being effected pursuant to and in
accordance with Rule 903 or Rule 904 under the Securities Act and, accordingly,
the Transferor hereby further certifies that (i) the Transfer is not being made
to a person in the United States and (x) at the time the buy order was
originated, the Transferee was outside the United States or such Transferor and
any Person acting on its behalf reasonably believed and believes that the
Transferee was outside the United States or (y) the transaction was executed in,
on or through the facilities of a designated offshore securities market and
neither such Transferor nor any Person acting on its behalf knows that the
transaction was prearranged with a buyer in the United States, (ii) no directed
selling efforts have been made in contravention of the requirements of Rule
903(b) or Rule 904(b) of Regulation S under the Securities Act and (iii) the
transaction is not part of a plan or scheme to evade the registration
requirements of the Securities Act. Upon consummation of the proposed transfer
in accordance with the terms of the Indenture, the transferred Book-Entry
Interest or Definitive Registered Note will be subject to the restrictions on
Transfer enumerated in the Private Placement Legend printed on the International
Global Note and/or the Definitive Registered Note and in the Indenture and the
Securities Act.
3. [_] Check and complete if Transferee will take
delivery of a Book-Entry Interest in the U.S. Global Note or a Definitive
Registered Note pursuant to any provision of the Securities Act other than Rule
144A or Regulation S. The Transfer is being effected in compliance with the
transfer restrictions applicable to Book-Entry Interests in Restricted Global
Notes and Restricted Definitive Registered Notes and pursuant to and in
accordance with the Securities Act and any applicable blue sky securities laws
of any state of the United States, and accordingly the Transferor hereby further
certifies that (check one):
(a) [_] such Transfer is being effected pursuant to and in
accordance with Rule 144 under the Securities Act;
or
(b) [_] such Transfer is being effected to the Company or
a subsidiary thereof;
or
(c) [_] such Transfer is being effected to an
institutional "Accredited Investor," as defined in Rule 501(a)(1), (2), (3) or
(7) of Regulation D under the Securities
B-2
Act, and pursuant to an exemption from the registration requirements of the
Securities Act other than Rule 144A, Rule 144 or Rule 904, and the Transferor
hereby further certifies that it has not engaged in any general solicitation
within the meaning of Regulation D under the Securities Act and the Transfer
complies with the transfer restrictions applicable to Book-Entry Interests in a
Restricted Global Note or Restricted Definitive Registered Notes and the
requirements of the exemption claimed, which certification is supported by (1) a
certificate executed by the Transferee in the form of Exhibit D to the Indenture
---------
and (2) if such Transfer is in respect of a principal amount of Notes at the
time of transfer of less than (euro)250,000, an Opinion of Counsel provided by
the Transferor or the Transferee (a copy of which the Transferor has attached to
this certification), to the effect that such Transfer is in compliance with the
Securities Act. Upon consummation of the proposed transfer in accordance with
the terms of the Indenture, the transferred Book-Entry Interest or Definitive
Registered Note will be subject to the restrictions on transfer enumerated in
the Private Placement Legend printed on the Restricted Global Note and/or the
Restricted Definitive Registered Notes and in the Indenture and the Securities
Act.
4. [_] Check if Transferee will take delivery of a Book-
Entry Interest in an Unrestricted Global Note or an Unrestricted Definitive
Registered Note. The Transfer is being effected pursuant to an effective
registration statement under the Securities Act and in compliance with the
prospectus delivery requirements of the Securities Act. Upon consummation of the
proposed transfer in accordance with the terms of the Indenture, the transferred
Book-Entry Interest or Definitive Registered Note will not be subject to the
restrictions on transfer enumerated in the Private Placement Legend.
B-3
This certificate and the statements contained herein are made
for your benefit and the benefit of the Company.
_____________________________________
[Insert Name of Transferor]
By: ________________________________
Name:
Title:
Dated: ____________________
B-4
ANNEX A TO CERTIFICATE OF TRANSFER
1. The Transferor owns and proposes to transfer the following:
[CHECK ONE OF (a)(i), (a)(ii) or (b)]
(a) [_] a Book-Entry Interest in the:
(i) [_] U.S. Global Note (ISIN __________;
Common Code __________), held through Participant Account
__________, or
(iii) [_] International Global Note (ISIN
__________; Common Code __________), held through Participant
Account __________, or
(b) [_] a Restricted Definitive Registered Note; or
2. After the Transfer the Transferee will hold:
[CHECK ONE]
(a) [_] a Book-Entry Interest in the :
(i) [_] U.S. Global Note (ISIN __________;
Common Code __________), held through Participant Account
__________, or
(ii) [_] International Global Note (ISIN
__________; Common Code __________), held through Participant
Account __________, or
(iii) [_] Unrestricted Global Note (ISIN
__________; Common Code ___________), held through Participant
Account __________, or
(b) [_] a Restricted Definitive Registered Note; or
(c) [_] an Unrestricted Definitive Registered Note.
B-5
EXHIBIT C
---------
FORM OF CERTIFICATE OF EXCHANGE
Sola International Inc.
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▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇▇▇▇
The Bank of New York
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▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇
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Attn: Corporate Trust Administration
Re: 11% Senior Notes due 2008 Sola International Inc.
-------------------------------------------------
(Regulation S ISIN XS-0127985397; Common Code 012798539)
(144A ISIN XS-0128004792; Common Code 012800479)
Reference is hereby made to the Indenture, dated as of April
17, 2001 (the "Indenture"), among Sola International Inc., as issuer (the
---------
"Company") and The Bank of New York, as trustee. Capitalized terms used but not
-------
defined herein shall have the meanings given to them in the Indenture.
__________________________ (the "Owner") owns and proposes to
-----
exchange the Note[s] or interest in such Note[s] specified on Annex A hereto, in
-------
a principal amount of (euro)____________ (the "Exchange"). In connection with
--------
the Exchange, the Owner hereby certifies that:
1. Exchange of Restricted Definitive Registered Notes or
Book-Entry Interests in Restricted Global Notes for Restricted Definitive
Registered Notes or Book-Entry Interests in Restricted Global Notes
(a) [_] Check if Exchange is from Book-Entry Interest
in a Restricted Global Note to Restricted Definitive Registered Note. In
connection with the Exchange of the Owner's Book-Entry Interest in a Restricted
Global Note for a Restricted Definitive Registered Note with an equal principal
amount, the Owner hereby certifies that the Restricted Definitive Registered
Note is being acquired for the Owner's own account without transfer. Upon
consummation of the proposed Exchange in accordance with the terms of the
Indenture, the Restricted Definitive Registered Note issued will continue to be
subject to the
C-1
restrictions on transfer enumerated in the Private Placement Legend printed on
the Restricted Definitive Registered Note and in the Indenture and the
Securities Act.
(b) [_] Check if Exchange is from Restricted
Definitive Registered Note to Book-Entry Interest in a Restricted Global Note.
In connection with the Exchange of the Owner's Restricted Definitive Registered
Note for Book-Entry Interest in a Restricted Global Note with an equal principal
amount, the Owner hereby certifies that the Book-Entry Interests are being
acquired for the Owner's own account without transfer. Upon consummation of the
proposed Exchange in accordance with the terms of the Indenture, the Book-Entry
Interests will continue to be subject to the restrictions on transfer enumerated
in the Private Placement Legend printed on the Restricted Global Note and in the
Indenture and the Securities Act.
This certificate and the statements contained herein are made
for your benefit and the benefit of the Company.
[Insert Name of Owner]
By: ____________________________________
Name:
Title:
Dated: ______________________
C-2
ANNEX A TO CERTIFICATE OF EXCHANGE
1. The Owner currently owns and proposes to Exchange the
following:
[CHECK ONE OF (a)(i), (a)(ii) or (b)]
(a) a Book-Entry Interest in the:
(i) [_] U.S. Global Note (ISIN __________;
Common Code __________), held through Participant Account
__________, or
(ii) [_] International Global Note (ISIN
__________; Common Code __________), held through Participant
Account __________, or
(b) [_] a Restricted Definitive Registered Note.
2. After the Exchange the Owner will hold:
[CHECK ONE]
(a) a Book-Entry Interest in the:
(i) [_] U.S. Global Note (ISIN __________;
Common Code __________), through Participant Account __________,
or
(ii) [_] International Global Note (ISIN
__________; Common Code __________), through Participant Account
__________, or
(b) [_] a Restricted Definitive Registered Note.
2. The Owner requests that Definitive Registered Notes be
registered in the following name:
-------------------
-------------------
and sent to the Owner at the following address:
-------------------
-------------------
C-3
EXHIBIT D
---------
FORM OF CERTIFICATE FROM
ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR
Sola International Inc.
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▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇▇▇▇
The Bank of New York
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: Corporate Trust Administration
Re: 11% Senior Notes due 2008 Sola International Inc.
-------------------------------------------------
Reference is hereby made to the Indenture, dated as of April
17, 2001 (the "Indenture"), among Sola International Inc., as issuer (the
---------
"Company") and The Bank of New York, as trustee. Capitalized terms used but not
-------
defined herein shall have the meanings given to them in the Indenture.
In connection with our proposed purchase of (euro)____________
aggregate principal amount of:
(a) [_] a Book-Entry Interest in a Global Note, or
(b) [_] a Definitive Registered Note,
we confirm that:
1. We understand that any subsequent transfer of the Notes
or any interest therein is subject to certain restrictions and conditions set
forth in the Indenture and the undersigned agrees to be bound by, and not to
resell, pledge or otherwise transfer the Notes or any interest therein except in
compliance with, such restrictions and conditions and the United States
Securities Act of 1933, as amended (the "Securities Act").
--------------
2. We understand that the offer and sale of the Notes have
not been registered under the Securities Act and that the Notes and any interest
therein may not be offered or sold except as permitted in the following
sentence. We agree, on our own behalf and on behalf of any accounts for which we
are acting as hereinafter stated, that if we should sell the
D-1
Notes or any interest therein, we will do so only (a) to Sola International Inc.
or any of its subsidiaries, (b) pursuant to a registration statement that has
been declared effective under the U.S. Securities Act, (c) for so long as the
Notes are eligible for resale pursuant to Rule 144A under the U.S. Securities
Act, to a person who the holder reasonably believes is a QIB purchasing for its
own account or for the account of a QIB in compliance with Rule 144A and to whom
notice is given that the transfer is being made in reliance on Rule 144A, (d)
pursuant to offshore transactions in compliance with Rule 903 and 904 under the
U.S. Securities Act, (e) in a transaction meeting the requirements of Rule 144
under the U.S. Securities Act, (f) to an institutional accredited investor that,
prior to such transfer, furnishes to the trustee or the registrar a signed
letter containing certain representations and agreements relating to the
transfer (the form of which letter has been obtained from the trustee) and, if
such transfer is in respect of an aggregate principal amount of Notes less than
(euro)250,000, an opinion of counsel acceptable to the Company that such
transfer is in accordance with the U.S. Securities Act, or (g) in accordance
with another exemption from the registration requirements of the U.S. Securities
Act (and based upon an opinion of counsel acceptable to Sola International
Inc.), subject in each of the foregoing cases to any requirements of law that
the disposition of its property or the property of such investor account or
accounts be at all times within its or their control and in compliance with any
applicable state securities laws. We further agree to provide to any person
purchasing the Definitive Registered Note or Book-Entry Interest in a Global
Note from us in a transaction meeting the requirements of clauses (a) through
(g) of this paragraph a notice advising such purchaser that resales thereof are
restricted as stated herein.
3. We understand that, on any proposed resale of the Notes
or Book-Entry Interest therein, we will be required to furnish to you and the
Company such certifications, legal opinions and other information as you and the
Company may reasonably require to confirm that the proposed sale complies with
the foregoing restrictions. We further understand that the Notes purchased by us
will bear a legend to the foregoing effect.
4. We are an institutional "accredited investor" (as
defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities
Act) and have such knowledge and experience in financial and business matters as
to be capable of evaluating the merits and risks of our investment in the Notes,
and we and any accounts for which we are acting are each able to bear the
economic risk of our or its investment.
5. We are acquiring the Notes or Book-Entry Interest
therein purchased by us for our own account or for one or more accounts (each of
which is an institutional "accredited investor") as to each of which we exercise
sole investment discretion without a view to distribution thereof and without
any present intention of selling such Notes or Book-Entry Interests in a
transaction that would violate the Securities Act.
D-2
You and the Company are entitled to rely upon this letter and
are irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceedings or official inquiry
with respect to the matters covered hereby.
[Insert Name of Accredited Investor]
By: _______________________________________
Name:
Title:
Dated: _______________
D-3
EXHIBIT E
---------
FORM OF GUARANTEE
For value received, the undersigned hereby unconditionally
guarantees to the Holder of this Note the cash payments in Euros of principal
of, premium, if any, Liquidated Damages, if any, and interest on this Note in
the amounts and at the time when due and interest on the overdue principal and
premium and, to the extent lawful, Liquidated Damages, if any, and interest, if
any, on this Note, if lawful, and the payment or performance of all other
obligations of the Company under the Indenture or the Notes, to the Holder of
this Note and the Trustee, all in accordance with and subject to the terms and
limitations of this Note and Article Eleven of the Indenture and this Guarantee.
This Guarantee will become effective in accordance with Article Eleven of the
Indenture and its terms shall be evidenced therein. The validity and
enforceability of each Guarantee shall not be affected by the fact that it is
not affixed to any particular Note. Capitalized terms used but not defined
herein shall have the meanings ascribed to them in the Indenture dated as of
April 17, 2001, between Sola International Inc. and The Bank of New York, as
Trustee, as amended or supplemented (the "Indenture").
---------
The obligations of the undersigned to the Holders of Notes and
to the Trustee pursuant to this Guarantee and the Indenture are expressly set
forth in Article Eleven of the Indenture and reference is hereby made to the
Indenture for the precise terms of this Guarantee and all of the other
provisions of the Indenture to which this Guarantee relates.
THIS GUARANTEE WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK. EACH GUARANTOR HEREUNDER AGREES TO
SUBMIT TO THE JURISDICTION OF THE STATE OF NEW YORK FOR THE PURPOSES SET FORTH
IN THE INDENTURE, THE NOTES OR THIS GUARANTEE.
[Signature Page Follows]
E-i
Date:
[ ],
as Guarantor
By: ____________________________________
Name:
Title:
E-ii